Weak Canada CPI Keeps USDCAD Very Bullish

Forex - Canada - 6598

Canada’s overall inflation rate slowed in November, putting the CAD under heavy pressure. Annual CPI fell 1.7%, from 2.4% compared with the same month a year earlier. Monthly CPI fell -0.4%, from 0.3% a month earlier.

Core CPI, which excludes gasoline, fell 1.5%,  from 1.7%  compared with the same month a year earlier. The Bank of Canada aims to keep inflation at 2%…

This development keeps the Canadian dollar under pressure at least for the coming days. USDCAD is very bullish with negative data from Canada. The pair sees a buying opportunity around support levels.

Now, eyes on Fed Rate Decision today at 19:00 GMT. A buying opportunity is likely. Levels to watch for USDCAD:

Support: 1.3398, 1.3300, 1.3250, 1.3154

Resistance: 1.3446, 1.3545, 1.3635, 1.3700