Loonie extends advance as Canada’s inflation rose in line with expectations
The pair fell to session low at 1.3116 after data showed inflation in Canada rose 2.2% in November, in line with expectations, boosted by higher energy prices.
The Bank of Canada kept interest rates unchanged for over one year and expects inflation temporarily rise in coming months but expect it to remain around its 2% in next two years.
Fresh weakness extends larger downtrend from 1.3320 zone lower platform, pressuring Monday’s spike low at 1.3115 ad Fibo support at 1.3109 (76.4% of 1.3041/1.3327), loss of which would expose key supports at 1.3041 (29 Oct low) and 1.3015 (2019 low posted on 19 July).
Daily MA’s in are full bearish setup and formed a number of bear-crosses and bearish momentum is rising that adds to negative outlook.
Daily close below 1.3150 (broken Fibo 61.8% of 1.3041/1.3327) reverted to resistance and eventual close below here after triple failure would reconfirm strong bearish stance.
Res: 1.3287; 1.3326; 1.3374; 1.3393
Sup: 1.3115; 1.3109; 1.3074; 1.3041