USD/CAD Analysis: Canadian Dollar Strengthens Ahead of Inflation News

<img src="https://images.unsplash.com/photo-1642092445920-37a5dbaeb774?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wxMTc3M3wwfDF8c2VhcmNofDIzfHxwb3VuZHxlbnwwfHx8fDE2OTUwMTkzNzR8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=2000" alt="USD/CAD Analysis: Canadian Dollar Strengthens Ahead of Inflation News" /><p>On September 7, <a href="https://fxopen.com/blog/en/oa-usd-cad-analysis-how-the-bank-of-canada-decision-affected-the-national-currency/">we wrote</a> that the level of 1.365 could serve as resistance, from which the price will form a bearish reversal.</p><p>As the USD/CAD chart shows, the rate dropped from this resistance to the psychological level of 1.3500, which served as support.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/09/181.png" alt="USD/CAD Analysis: Canadian Dollar Strengthens Ahead of Inflation News" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/09/181.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/09/181.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/09/181.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/09/181.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>Wherein:</p><p>&#x2192; The bullish trend (shown by the blue channel) is broken. Facing resistance at 1.365, the bulls failed to reach the upper boundary of the channel, which was a sign of weakening uptrend. One could also observe bearish divergences on a number of indicators.</p><p>&#x2192; The price at the beginning of the week is in a downward trend, which is shown by the red channel.</p><p>&#x2192; The price formed a rebound from the psychological level of 1.3500 at the end of last week, but the momentum on the rebound quickly faded. And a return to support at 1.35 means the inability of the bulls to seize the initiative and the unrelenting pressure of the bears.</p><p>&#x2192; Level 1.353, which served as local support, now resists price growth. The long upper shadow on the September 15 candle confirms bearish pressure.</p><p>Thus, support 1.35 is in danger of being broken. And perhaps a successful bear attack will occur tomorrow at 15:30 GMT+3, when news on inflation in Canada will be published. It is expected to remain at 3.7%, however, given the significant increase in energy prices in August, surprises may occur that will affect the current balance of supply and demand in the USD/CAD market.</p>