FXStreet (Edinburgh) - The USD/CAD is visiting levels below the psychological handle at 1.1000 on Thursday, following the better than expected results from the Canadian CPI.

USD/CAD clings to 1.1000

Canadian consumer prices expanded at an annual pace of 1.5% during March, surpassing forecasts for a 1.4% advance. On a monthly basis, prices rose 0.6% vs. 0.4% expected. The BoC Core reading banged on estimates, rising 1.3% over the last twelve months. In the US docket, Claims dropped to 304K in the week ended on April 11th, bettering expectations. “On the day we would expect to see USD demand on a dip towards 1.0975. Key resistance lies around 1.1040/50, a break of which should open up a move towards 1.1100”, suggested Stephen Gallo, European Head, FX Strategy at BMO.

USD/CAD levels to watch

As of writing the pair is losing 0.11% at 1.0996 with the immediate support at 1.0960 (low Apr.15) ahead of 1.0919 (low Apr.11) and finally 1.0907 (daily cloud base). On the flip side, a breakout of 1.1056 (daily cloud top) would open the door to 1.1061 (30-d MA) and then 1.1078 (high Mar.28).