USD/CAD has been quite indecisive today having volatile momentum on the either side of the market at the edge of 1.29 price area. Yesterday, the Federal Reserve raised the benchmark interest rate from 1.50% to 1.75%, but USD failed to gain required momentum against CAD which led to a drastic fall towards 1.29 from 1.31. Today, the US Unemployment Claims report was published with an increase to 229k from the previous figure of 226k which was expected to decrease to 225k and HPI report showed an increase to 0.8% which was expected to be unchanged at 0.4%. Moreover, today US Flash Manufacturing PMI report is yet to be published which is expected to slightly increase to 55.4 from the previous figure of 55.3, Flash Services PMI report is expected to be unchanged at 55.9, and CB Leading Index is expected to decrease to 0.5% from the previous value of 1.0%. On the other hand, today Canada does not have economic reports to secure its gains against USD. Tomorrow, Canada's CPI report is going to be published which is expected to decrease to 0.4% from the previous value of 0.7% and Core Retail Sales report is expected to increase to 0.9% from the previous negative value of -1.8%. As for the current scenario, both USD and CAD is forecasted to have mixed economic reports which may lead to further volatility and corrections along the way. Additionally, as the recent Rate Hike impact is still not felt, so there are certain chances that USD is going to dominate CAD further in the coming days if Canada fails to come up with positive economic reports tomorrow.
Now let us look at the technical view. The price is currently residing at the edge of 1.29 price area long with dynamic level of 20 EMA holding the price as a support. As the bullish trend has been quite non-volatile recently, so further bullish pressure is expected in this pair with a minimum target of 1.32 and later towards 1.35 in the future. As the price remains above 1.28 price area, further bullish pressure is expected.