The Canadian is supported by inflation data

The pair USD/CAD significantly weakened on the data on inflation in Canada in January. Thus, the basic consumer price index (CPI) (m/m) (Jan) unexpectedly rose to the level of 0.5%, thereby demonstrating growth of one percent.

At the same time, the pair USD/CAD remains near the significant resistance level 1.2700-50, from which the formation of a reversal is possible. This also confirms the safety of the downtrend. In this case, the safety of the upward movement of the American and the weak dynamics of oil will limit the strengthening of the Canadian currency.

In case of the development of the downward dynamics of the pair USD/CAD, one should expect the test of support levels: 1.2600-1.2590 and 1.2540-60. Resistance is the mark: 1.2700 and 1.2730.

Fig. USD/CAD. The current price is 1.2660.

Anton Hanzenko