After the breakdown of the 1.3500 level, the USD/CAD pair continued its downward movement against the background of the publication of macroeconomic statistics in the USA.
Updated inflation data have been presented: the consumer price index in annual terms for October amounted to 7.7%, which was lower than the forecast of 8.0%, while the base value reached 6.3%, yielding to experts' expectations of 6.5%. The slowdown in inflation is the result of the aggressive monetary policy of the US Fed, and it is likely that at the December meeting the regulator will slightly adjust the "hawkish" rate, raising the interest rate by less than 75.0 basis points.
As for the Canadian economy, there was no important economic news this week, so market participants are focused on the data on the USD.
The long-term trend in the USD/CAD pair has changed to a downward one this week. The level of 1.3500 was broken down by the bidders, after which the decline continued with a target at 1.3200, in case of a breakdown of which the quotes will go to the level of 1.2970.
The mid-term trend is downward. Earlier, the bidders reached the target zone of 1.3308–1.3286, if it is broken down, then the next target for sales will be the area of 1.3098–1.3078. The trend boundary shifts to 1.3565–1.3541, if it is reached, it is worth considering new short positions of the instrument with a target at the current week's minimum of 1.3300.
Resistance levels: 1.3530, 1.3730, 1.3830. | Support levels: 1.3200, 1.2970.