The CAD Remains Volatile Ahead of Current Account Results, 25+ PIP Movement Likely in CAD Parity; May 31, 2021
Canada’s Current Account q/q
Today Canada has scheduled to release various economic indicators at the same time at 1230 GMT/1800 IST. They are Canada’s Current account q/q, Industrial Product Price Index (IPPI) and Raw Materials Price Index (RMPI) data. In case of mixed data release, the CAD might give volatility to the FX market. Current account is directly linked to currency demand – a rising surplus indicates that foreigners are buying more of the domestic currency to execute transactions in the country.
Let’s see how CAD has reacted during the previous data release:
USD/CAD: The Canadian dollar trades in narrow range ahead of key economic indicators. The pair made intraday high at 1.2086 and low at 1.2061 mark. Today a day and H1 chart with Triple EMA confirms bearish for the time being. A sustained close above 1.2090 on H1 chart requires for the upside rally. Alternatively, a consistent close below 1.2064 on H1 chart will check key supports too.
Key Resistances: 1.2090, 1.2140, 1.2172, 1.2204, 1.2238
Key Supports: 1.2060, 1.2042, 1.2015, 1.1978, 1.1952
Take a look and do trade wisely!