Looking for the latest outlook for this week? Check the full section: Canadian Dollar Forecast
The Canadian dollar continues to show strength. It held to the range and gained 180 pips this week against the greenback. No events are due in Canada in this thin-volume week, so the outlook is only technical this time.
USD/CAD chart with support and resistance lines marked on it. Click to enlarge:
Weaker-than-expected GDP didn’t hurt the loonie’s ride, nor did the modest retails sales release. Let’s examine the charts:
USD/CAD Technical Analysis
USD/CAD traded between 1.07 and 1.0447 in the past week, a lower range than the previous week. The range of 1.04 to 1.0750 continues to dominate this pair’s trading. The lines haven’t changed from last week’s outlook.
Above 1.0750, 1.0850 was the previous peak and is a minor resistance line. Further above, 1.1130 is a very important resistance line, working as such more than once this year.
Looking down below 1.04, 1.02 is the next support line. It was the year-to-date low, and probably won’t be challenged. Also parity, the ultimate support line, looks too far now.
I am still neutral on USD/CAD
The strength of the Canadian dollar is quite impressive, and there are reasons for this. Strong inflation figures, great employment numbers and great housing figures. But a break downwards probably won’t happen this week.
Further reading on Forex Crunch:
- For a broad view of all the week’s major event in all currencies, read the forex weekly outlook.
- For the Euro, read the EUR/USD forecast.
- For the British Pound, check out the GBP/USD forecast.
- For the Australian dollar, read the Aussie forecast.
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