The Canadian Core CPI MoM will be Released on December 21, 2022, if the Result is Above 0.4% it would be Bullish for the Canadian Currency

Summary:

The Canadian economy might show some strength versus major currencies after releasing the Core CPI data on 21-12-2022 at 5:30 PM (GMT +4) if the result comes out more than 0.4% it would be bullish for the Canadian, otherwise it would be bearish.

SELL USDCAD

Close Time

CLOSED

1.36400

Entry Price

1.35800

1.36700

1.40359 -0.00047 -0.03%

60.0

Pips

Profit

1.35800

1.35783

Exit Price

1.36400

Entry Price

1.36700

Fundamentals

Canada will release the Core CPI report for November on December 21, 2022. The CPI is one of the major monthly indicators that affect the market widely, it measures the change in the price of goods from a consumer perspective, and it is a key to monitoring inflation. A higher-than-expected data is bullish for the CAD, and lower-than-expected data is bearish for the CAD. If inflation is high, then it means that the Canadian Central Bank will take a step to lower the inflation by increasing interest rates further, that’s why if core CPI is higher than expected, the Canadian currency will gain strength. On the other side, if the core CPI is lower than expected, it means that Canadian Central Bank will ease tightening monetary policy, and would step forward to decrease the increase in the interest rate, thus the Canadian currency will weaken.

Major traders are staying out of the market as the new year is coming.

Technical Analysis

USDCAD Daily Chart

The 1H USDCAD pattern shows a strong bearish engulfing with possible prices touching the 1.35800 level.

Support and resistance:

1.3616

1.3597

1.3588

Pivot: 1.3625

1.3672

1.3653

1.3644

Trading Recommendations

Trading Direction: Short

Entry Price: 1.36400

Target Price: 1.35800

Stop Loss: 1.36700

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