Today, CPI data from the US is definitely an important indicator that will strongly affect the volatility on USD pairs. Ahead of this data, we have a super strong sell signal on the EUR/USD, where the price broke the neckline of the giant head and shoulders pattern. Sentiment is negative and that can mark the beginning of an end for the main pair on the market.
USD/CAD is bouncing from the long-term up trendline and today is trying to break the resistance on the 1.31. Price closing a day above the red area, will be strong buy signal. Do not forget about the data from the Canadian job market which also will be posted today.
Is the Dollar Index also supporting this bullish view? Yes, on the DXY we have a strong buy signal from the ascending triangle pattern. Yesterday, the price broke the horizontal resistance of this pattern and then used that as a support. Today, the DXY is climbing much higher and that is a pure confirmation of the positive sentiment towards the USD.