On the daily chart below, we can see that the price is sitting at a strong key support level at 1.3664 where we can also find confluence with the red long period moving average. The sellers are most likely to lean on this level with defined risk if the price breaks below it.
The strong selloff in oil prices recently, may weigh on the CAD and the possible recession should be positive for the USD as a safe haven. Today, we will also see the Canadian CPI and it’s likely that a miss in the data would be negative for the CAD and a beat would keep the market in a range ahead of the FOMC decision tomorrow.
On the 4 hour chart below, we can see that the level at 1.3664 has also support from the 38.2% Fibonacci retracement level just below it. This will be the zone where the buyers will lean onto in expectations of a resumption of the uptrend. The sellers, on the other hand, will try a break below to get more conviction and start a bigger fall.
On the 1 hour chart below, we can see that the buyers have tried several times to break above the counter-trendline but with no success yet. We should see the buyers jumping in strongly once we get the breakout. The market is focused on the FOMC decision tomorrow and we may keep seeing this choppy price action until then.
