USD/CAD daily chart with support and resistance lines on it. Click to enlarge:
- GDP: Tuesday, 12:30. Canada releases GDP on a monthly basis. In December, the economy grew 0.3%, its best month since April. Will the upswing continue in January?
- Raw Materials Price Index: Tuesday, 12:30. The index was unexpectedly soft in January, posting a decline of 2.2%. This was well of the estimate of 2.1% and followed a strong gain of 2.8% in December. We now await the February data.
- Manufacturing PMI: Wednesday, 13:30. The PMI continues to produce readings above the 50-level, which separates expansion from contraction. In February, the index improved to 51.8, its best score since February 2019. Will the PMI remain in expansion territory in March?
USD/CAD Technical Analysis
Technical lines from top to bottom:
With USD/CAD sliding last week, we begin at lower levels:
1.4310 remains relevant as USD/CAD continues to show volatility.
1.4159 (mentioned last week) has switched back to a resistance role after USD/CAD dropped sharply last week.
1.4019 is a weak resistance line.
The round number of 1.39 is providing support.
1.3757 has held in support since mid-March.
1.3660 is the final support level for now.
I remain bullish on USD/CAD
The Canadian dollar rebounded last week, but it will have to continue to deal with rock-bottom oil prices and the economic bite from COVID-19. This will likely mean stormy waters are ahead for the minor currency.
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