USD/CAD is currently quite bearish, having 1.27 support level cleared with a daily close which opened the doors for the price to proceed much downward in the coming days. CAD has been quite positive with the gains recently despite a lack of any economic reports or events to support its recent gains, but it seems like the weakness of USD is the working factor in this case. USD has been quite weaker recently amid mixed economic reports which made the US currency lose ground against other rival currencies. Today, US CB Consumer Confidence report is going to be published which is expected to decrease to 128.2 from the previous figure of 129.5 and Pending Home Sales is expected to be negative at -0.4% from the previous value of 3.5%. The economic reports from the US are quite negatively forecasted. If that happens, then CAD is going to dominate further in the coming days until the US comes up with any positive economic reports or events to help it regain the momentum it has lost recently.
Now let us look at the technical chart. The price is currently hovering below the 1.2700 event level which held the price earlier. However, this time the price had a break with a daily close below the level which indicates that the price is going to proceed much lower towards 1.2450 in the coming days. As the price remains below 1.27 with a daily close, the bearish bias is expected to continue further.