USD/CAD saw early declines before getting bolstered by a weak Canadian CPI


USD/CAD fell to a daily low of 1.3472 on Tuesday before rebounding into an intraday high of 1.3530 after Canadian Consumer Price Index (CPI) inflation fell faster than markets expected. A weaker-than-expected Canadian inflation print softened the Canadian Dollar (CAD) across the board. Canadian Retail Sales figures are due Thursday, and markets will be pivoting to focus on the Federal Reserve (Fed) and the Federal Open Market Committee (FOMC).

The FOMC’s latest Meeting Minutes will drop on Wednesday. Tuesday’s climb into 1.3530 filled the Fair Value Gap (FVG) from 1.3530 to 1.3470, and the pair hangs in the midrange surrounding the 1.3500 handle. The nearest supply zone rests just below 1.3450 and represents a significant buy zone, while top-side pressure sees heavy selling around the Order Block (OB) near 1.3580. Daily candlesticks remain caught in a significant congestion zone as bids consolidate near the 200-day Simple Moving Average (SMA). The pair is caught between December’s lows near 1.3177 and last November’s peak just shy of 1.3900.


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