USD/CAD Double Bottom – How to Trade Canadian Inflation Rate

Posted Friday, September 21, 2018 by
Arslan Butt • 1 min read

It’s a fine day to trade the Loonie pairs as the Statistics Canada is due to release the CPI & Core CPI figures later today at 13:30 (GMT). Headline inflation grew by 0.5% in July, while Core CPI inched behind with a more modest 0.2%. The Bank of Canada needs to see a significant rise in inflation in order to justify a move. So, buckle up to trade the event…

USD/CAD – Double Bottom Pattern In Play

Looking at the 4- hour chart, the USD/CAD pair is trading right above the double bottom pattern. This pattern is extending a significant support at $1.2895.

  • The 20 & 50 periods EMA is suggesting a bearish bias of investors.
  • The RSI is holding below 50, demonstrating the selling trend of the pair.
  • The double bottom pattern may cause a bounce off above 1.2890.
  • Investors will be waiting for the CPI figures to determine future trends of the market.

Positive CPI – Better than expected CPI may cause a violation of 1.2890 on a lower side and the pair can drop to 1.2850 and 1.2820.

Negative CPI – Worse than expected CPI may cause a bounce off above 1.2890 and it may lead the pair towards 1.2975.

Good luck and stay tuned to FX Leaders Economic Calendar for the live coverage of Canadian CPI figures!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Crude Oil has been bearish for more than a year, but this week we saw a decent reversal higher on higher Caixin manufacturing
3 days ago
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments