US housing data will grab the attention of forex traders, together with a regional economic report anticipated to show a sharp slowdown for December. The House Price Index is called slightly higher, and economists expect a rebound in existing home sales. With the USDCAD pressuring its horizontal resistance level, how will this currency pair react following the release of today’s economic data? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.

Markets expect the Bank of Canada to maintain interest rates at 1.75%. The Canadian central bank opened the door to an interest rate cut but annualized inflation is running above the 2.0% target, keeping the BoC sidelined. Canadian housing prices are anticipated to come in flat. Can bulls step in and force a breakout in the USDCAD, or will bears pressure for a reversal? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.