USD/CAD recovers from 3-month lows

USD/CAD pair recovered from the three-month low of 1.3019 in the Asian session in what appears to be a chart driven move.

Eyes US CPI, Yellen speech and BOC rate decision

The consumer price index (CPI) is expected to improve to 2.1% annually from the last reading of 1.7%. The core figure is expected to tick up to 2.2% from the prior 2.1%.

USD traders would also keep an eye on Yellen speech, which may provide more insights into the monetary policy outlook.

Meanwhile, the CAD side of the story is dependent on Bank of Canada’s policy tone. The central bank is expected to keep the interest rates unchanged at 0.5%.

USD/CAD Technical Levels

The pair was last seen trading around 1.3065. A break above 200-DMA of 1.3096 would open doors for 1.3119 (Jan 11 low), above which gains could be extended to 1.3162 (10-DMA). On the other hand, a breakdown of support at 1.3038 (session low) could yield a sell-off to 1.30, under which the losses could be extended to 1.2965 (Aug 22 high).