Ella 
The USD/CAD pair traded in the 1.3600-1.3700 range on Tuesday, as volatility came under pressure ahead of Federal Reserve Chairman Jerome Powell’s speech scheduled for Wednesday.
The USD/CAD saw a spike in volatility on Tuesday following weak inflation data from Statistics Canada and strong retail sales data for September from the US Census Bureau. Consumer spending rose 0.7% on strong auto demand and higher gasoline prices.
Canada’s monthly headline and core consumer price index (CPI) fell 0.1%, versus investor expectations for a 0.1% gain. The annual headline and core CPIs fell to 3.8% and 2.8%, respectively. A weak Canadian inflation report dampened hopes for another rate hike from the Bank of Canada (BOC).
The USD/CAD is trading within a symmetrical triangle on the two-hour chart, suggesting that volatility may be under pressure. The uptrend line for the above pattern is drawn from the October 10 low at 1.3570, while the downtrend line is drawn from the October 5 high at 1.3786.
USD/CAD has dropped to the 100-period exponential moving average (EMA) at 1.3610. A further break below this level could strengthen the Canadian Dollar.
The Relative Strength Index (RSI) (14) is trading in a range of 40.00-60.00, suggesting consolidation ahead.
A decisive break above the March 24 high near 1.3800 would expose USD/CAD to the March 10 high of 1.3860 and then round number resistance at 1.3900.
Alternatively, a break below the Sept. 25 low at 1.3450 would send USD/CAD toward the Sept. 20 low at 1.3400. A further break below that level could take the pair to a six-week low near 1.3356.
