USDCAD Waiting for the CPI to position itself towards 1.40!

OANDA:USDCAD   U.S. Dollar / Canadian Dollar
The Canadian Dollar experiences a slight uptick in a calm yet moderately optimistic Monday. Tuesday's Canadian CPI figures will be in focus for Loonie traders. The market anticipates a marginal increase in the monthly figure, 0.1% for October compared to September's -0.1%. The expected annualized Canadian CPI inflation is projected to cool slightly, coming in at 3.6% versus the previous 3.8%. With broader markets mainly concentrated on the US Dollar, the release of the Federal Reserve's FOMC Meeting Minutes on Tuesday could attract additional attention. Markets are betting that the Fed has concluded rate hikes, and investors are focusing on inflation figures in anticipation of future rate cuts. On the daily candlesticks, the USD/CAD continues to receive bids pushing towards dynamic technical support represented by the rising trendline from July's lows of 1.3100. Bids continue to find support from the 50-day SMA, and the long-term trend appears to support continued USD strength. On the bearish side, the USD/CAD struggles to establish significant gains, and downside risks increase as the pair moves towards the year's high side. The price is within a supply zone; in my view, the price has retested the zone and is now attempting to go long. We will see tomorrow with the CPI data if it will support this upward move towards 1.40. Personally, I will look for a hypothetical long entry tomorrow during the London open, also considering the data; then I will assess how I manage risk, which is the most important aspect—always managing capital. Greetings and happy trading to everyone from Nicola, the CEO of Forex48 Trading Academy.

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