USD/CAD has been correcting itself below the 1.2950 area, from where it is expected to push lower in the coming days. The market is currently quite volatile and indecisive, whereas both currencies in the pair are struggling with the mixed economic reports recently.
Ahead of the FOMC Meeting today, USD is currently showing some impulsive gains over CAD which is expected to get definiteness after the Fed Chair Powell speaks about the upcoming interest rate decisions and monetary policies this Friday. Though there are certain chances of USD to increase its interest rates in the coming months which might lead to further gain on the USD side in future. Today, ahead of the FOMC Meeting Minutes, USD New Home Sales report is going to be published which is expected to decrease to 680k from the previous figure of 694k and Crude Oil Inventories report is expected to decrease to -2.5M from the previous figure of -1.4M.
On the other hand, today there are no impactful economic reports or events to be published on the CAD side, but tomorrow Corporate Profits report is going to be published which is expected to increase from the previous value of -1.9%.
As of the current scenario, USD high impact economic reports to be published today is expected to inject some volatility in the market which might lead to certain definiteness in the pair. This week, CAD do not have any impactful economic reports to support its gains against USD, whereas upcoming momentum in this pair is fully depended upon the upcoming high impact economic events of USD to be published. To sum up, USD is expected to gain momentum over CAD in the coming days, if the upcoming high impact economic events turns out to have better outcomes.
Now let us look at the technical view. The price is currently residing just below the 1.2900-50 area, if it is broken above in the coming days with a daily close, further bullish pressure is expected with target towards the 1.3120 area in the future. Though the price is still correcting below the 1.29 area along with certain bearish volumes as per MACD histograms, there are certain chances of bearish pressure in the pair. As the price remains below 1.29 with a daily close, certain bearish pressure is expected in this pair in the future.