Heads Up – Canadian inflation due in an hour – Quick setup on the USD/CAD

The Loonie is unchanged ahead of the top-tier economic events. As explained earlier on Aug 17- Economic Event Bried, the Canadain economy...


The Loonie is unchanged ahead of the top-tier economic events. As explained earlier on Aug 17- Economic Event Brief, the Canadain economy is going to release inflation figures at 13:30 (GMT). Back in June, the Canadian inflation figures soared by 0.1% and 2.5%, fueled by energy prices. We could see a more moderate increase now. Core CPI increased by 0.1% m/m as well, but only 1.3% yearly.

The USD/CAD has formed an ascending triangle pattern which is providing a strong resistance at $1.3175 while supporting it near $1.3120.

USD/CAD - 120 Min Chart

How to trade inflation?

Better than expected Inflation: The CPI figure of 0.3% or higher is likely to cause a sell-off in the USD/CAD. So, I will be looking to stay bearish below $1.3175 to target $1.3115.

Worse than expected Inflation: The CPI figure of -0.1% of lower can cause a massive buying in the USD/CAD. I will be a nice chance to jump in buying above $1.3175 to target $1.3215. Good luck!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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