The USD/CAD pair drops as the Dollar Index plunged in the short term. A sell-off was expected after registering false breakouts above the triangleās resistance. A temporary rebound could bring new short opportunities. The USD/CAD price drops like a rock after the Canadian inflation figures. The USD depreciated versus its rivals as the Dollar Index turned to the downside. The price was 1.2497 at the time of writing, far below 1.2646, yesterdayās high. –Are you interested in learning more about forex bonuses? Check our detailed guide- Technically, the price action signaled that the buyers were exhausted and that the bulls could take the lead again. The DXY has shown overbought signs in the short term, so a temporary correction was expected even though the US data came in better than expected yesterday. Building Permits came in at 1.87M above 1.83M expected, while the Housing Starts indicator was reported at 1.79M above 1.74M forecasts. Today, the Canadian CPI reported a 1.4% growth in March versus 0.9% expected compared to 1.0% growth in February, while the Core CPI rose by 1.0% in the last month versus 0.5% in the previous reporting period. In addition, Common CPI, Median CPI, and the Trimmed CPI came in higher than expected. The greenback took a hit from the US Existing Home Sales earlier. The economic indicator dropped from 5.93M to 5.77M, below 5.78M expected. Get FREE Forex Signals Now! USD/CAD price technical analysis: Deeper correction The USD/CAD pair developed a larger downside movement after registering false breakouts above the triangleās resistance and through the ascending pitchfork median line (ml). In addition, the false breakouts above the triangleās upside line signaled that we may have a downside breakout from this pattern. –Are you interested in learning more about ETF brokers? Check our detailed guide- As you can see from the 4-hour chart, the price ignored the ascending pitchforkās lower median line (LML), the weekly S1 (1.2530), and the 150% Fibonacci line. These levels were seen as potential downside obstacles. Breaking below these levels signaled that we may have a larger drop. The next downside obstacle is represented by the first warning line (wl1) of the ascending pitchfork. After its massive drop, we cannot exclude a potential rebound to help the sellers catch a new sell-off. Technically, the rebound was over after the price failed to stabilize above the 50% retracement level. Looking to trade forex now? Invest at eToro! Trade Forex Now! 68% 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 Olimpiu Tuns Olimpiu Tuns Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms. View All Post By Olimpiu Tuns Majors share Read Next GBP/USD Outlook: Buyers Overshadowed at 1.3080, Eying Fed, BoE Saqib Iqbal 4 weeks The USD/CAD pair drops as the Dollar Index plunged in the short term. A sell-off was expected after registering false breakouts above the triangleās resistance. A temporary rebound could bring new short opportunities. The USD/CAD price drops like a rock after the Canadian inflation figures. The USD depreciated versus its rivals as the Dollar Index turned to the downside. The price was 1.2497 at the time of writing, far below 1.2646, yesterdayās high. -Are you interested in learning more about forex bonuses? Check our detailed guide- Technically, the price action signaled that the buyers were exhausted and that the bulls… 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.