Canadian CPI In FocusThe release of Canadian CPI due later today puts the focus on the Canadian Dollar. With oil prices remaining at highs over January and with supply-side issues yet to be resolved, the market is looking for CAD CPI to rise across all metrics. Looking at the headline monthly reading, the market forecasts an uptick to 0.6% from the prior month’s -0.1%. With CAD already well supported from the ongoing lift in oil prices, a solid reading today should help further the rally in the near term.Where to Trade CAD CPI?CADJPYThe pair has been trading in a narrow sideways range across the year so far, remaining within the upper portion of the large contracting triangle pattern which has framed price action since September 2021. However, with price looking to be supported along the 90.69 level, and with MACD and RSI turning higher, the focus is on an eventual break higher. Bulls can look for a topside break of 91.60, targeting a move up to 92.74 initially.
Source: Tickmill
