USD/CAD has been non-volatile with the bearish gains which lead the price to break below 1.26 which is expected to proceed lower in the coming days. Despite having worse economic reports this week, CAD was quite successful with the sustainability of the bearish pressure over USD. CAD Employment Change report published last week was a good sign for the currency as it showed a significant increase in employment to 32.3k from the previous figure of 15.4k having Unemployment Rate unchanged at 5.8%. The positive economic report has been speculated as the crucial element for the continuation of the bearish pressure in the market against USD recently. Today CAD NHPI report is going to be published which is expected to increase to 0.1% from the previous value of 0.0%, whereas better than expected result may lead to further impulsive bearish pressure in the coming days. On the other hand, having CPI report published with a decrease to -0.1% from the previous value of 0.2% and FOMC Meeting with no crucial information did not quite helped USD to come back with certain momentum against CAD. Today USD Unemployment Claims report is going to be published which is expected to 231k from the previous figure of 242k, Import Price is expected to decrease to 0.2% from the previous value of 0.4% and Natural Gas Storage is expected to decrease in deficit to -11B from the previous figure of -29B. As of the current scenario, CAD is expected to continue its bearish pressure against USD in the coming days having optimistic economic reports to be published whereas USD is expected to struggle with its economic report results published recently.
Now let us look at the technical view. The price is currently showing some bullish pressure today which is expected to form certain retracement towards 1.27 area before showing any bearish impulsive pressure with a target towards 1.2400-50 area in the coming days. As the price remains below 1.28 area, the bearish bias is expected to continue in this pair.