The Canadian dollar had an uneventful week, as USD/CAD posted slight losses. The pair closed the week at 1.2259. The upcoming week is very quiet, with only one release this week. Here is an outlook on the major market-movers and an updated technical analysis for USD/CAD.
In the US, the news was mixed as inflation slipped, while employment and manufacturing numbers beat expectations. The Federal Reserve statement was clearly dovish, which didn’t help the US dollar. Over in Canada, inflation met expectations, but manufacturing and retail sales disappointed.
[do action=”autoupdate” tag=”USDCADUpdate”/]USD/CAD daily chart with support and resistance lines on it. Click to enlarge:
- BOC Deputy Governor Lawrence Schembri Speaks: Thursday, 16:10. Schembri will deliver remarks at an event in Windsor, Ontario. A speech which is more hawkish than expected is bullish for the Canadian dollar.
* All times are GMT.
USD/CAD Technical Analysis
USD/CAD opened the week at 1.2310 and quickly touched a high of 1.2360, as support held firm at 1.2387 (discussed last week). The pair then moved downwards, touching a low of 1.2127. USD/CAD recovered and closed the week at 1.2259.
Live chart of USD/CAD: [do action=”tradingviews” pair=”USDCAD” interval=”60″/]
Technical lines, from top to bottom
With the Canadian dollar posting sharp gains, we start at lower levels.
1.2798 has remained intact since mid-March.
1.2646 is the next resistance line.
1.2541 has provided an important cap in June.
1.2387 remains an immediate support level.
1.2230 was tested in support as USD/CAD posted sharp losses last week.
1.2114 is a strong support level.
1.1995 is situated just below the symbolic 1.20 level. This line has remained intact since mid-May.
1.1872 is the final support level for now.
I am neutral on USD/CAD
Both the US and Canada posted mixed numbers last week. Although the US economy is looking brighter than its northern neighbor, the lack of confidence from Yellen could weigh on the greenback and prevent a significant upward move.
In our latest podcast we digest the dollar dove dive, update on Greece and preview next week’s events.
Further reading:
- For a broad view of all the week’s major events worldwide, read the USD outlook.
- For EUR/USD, check out the Euro to Dollar forecast.
- For the Japanese yen, read the USD/JPY forecast.
- For GBP/USD (cable), look into the British Pound forecast.
- For the Australian dollar (Aussie), check out the AUD to USD forecast.
- For the kiwi, see the NZDUSD forecast.