USD/CAD remains under pressure as crude oil recovers. US CPI came as expected, dented the Dollar pressure. Fed’s tapering decision is highly dependent on the inflation data. The USD/CAD analysis closed in negative territory on Tuesday as a strong recovery in crude oil helped the commodities-linked Canadian dollar outperform its US counterpart. However, on Wednesday, the pair struggled to contain its losses and last climbed 0.15% on the day to 1.2540. –Are you interested to learn more about crypto signals? Check our detailed guide- A West Texas Intermediate (WTI) crude barrel rose more than 2% Tuesday due to favorable market conditions. WTI, however, struggled to maintain bullish momentum on Wednesday due to the lack of fundamentals. At the time of writing, WTI was down 1.44% to $ 67.30 on the day. The inflation controversy has erupted in financial markets, and today’s CPI figures in the US provide evidence of how sensitive price movements really are. Overall, the numbers were in line with forecasts, but the dollar declined sharply across the board. The USD/CAD pair, for instance, fell nearly 40 pips to its lowest level in four days breaking the 1.2500 mark. Get FREE Forex Signals Now! USD under pressure in general It’s surprising how large these moves were, but it relates to the discussion of tapering (September versus December), as well as how fast it will be once it begins. As long as inflation falls naturally, the Fed does not need to raise rates above about 1% of its funds. In particular, I’m intrigued by how large the movement was on the “inline” CPI print. This suggests that long dollar positions are overflowing, as Goldman Sachs recently warned. –Are you interested to learn more about forex bonuses? Check our detailed guide- USD/CAD technical analysis: 200-SMA to lend support The USD/CAD pair briefly fell below the 1.2500 mark where it found interim support and is rising now. The price remains supported by the 200-period SMA on the 4-hour chart. The price is well below the 20 and 50 SMAs as well. However, the average daily range for the day so far is 71%. It shows that there is still potential to fall further. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Majors share Read Next IoTeX Price Prediction: IOTX Rallies 247% Following Coinbase Listing Nancy Lubale 1 year USD/CAD remains under pressure as crude oil recovers. US CPI came as expected, dented the Dollar pressure. Fed’s tapering decision is highly dependent on the inflation data. The USD/CAD analysis closed in negative territory on Tuesday as a strong recovery in crude oil helped the commodities-linked Canadian dollar outperform its US counterpart. However, on Wednesday, the pair struggled to contain its losses and last climbed 0.15% on the day to 1.2540. –Are you interested to learn more about crypto signals? Check our detailed guide- A West Texas Intermediate (WTI) crude barrel rose more than 2% Tuesday due to favorable market conditions.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.