USD/CAD daily chart with support and resistance lines on it. Click to enlarge:
- Wholesale Sales: Monday, 12:30. This indicator is a leading indicator of consumer spending. In January, the indicator gained 1.8%, up from 0.9% a month earlier. This was its highest level since January 2017. However, analysts are projecting a decline of 0.2% in February.
- Retail Sales: Tuesday, 12:30. The headline figure accelerated to 0.4% in January, up from zero in the previous reading. Core retail sales fell by 0.1% in January, down from 0.5% in December. We now await the February release.
- Inflation: Wednesday, 12:30. Consumer inflation rose 0.4% in February, up from 0.3%, This marked its highest level since July. The core figure improved to 0.7%, up from 0.4% a month earlier. Will the upswing continue in the upcoming release?
USD/CAD Technical Analysis
Technical lines from top to bottom:
We start with resistance at 1.4310.
1.4159 (mentioned last week) has some breathing room in resistance.
1.4019 has switched to a resistance role after USD/CAD lost ground.
The round number of 1.39 is a weak support line. 1.3757 is next.
1.3660 is the final support level for now.
I remain bullish on USD/CAD
The outlook for the Canadian dollar is negative, as the economic fallout from COVID-19 has shut down much of the economic activity in Canada and the United States, its most important trading partner. Weak oil prices are also weighing on the Canadian dollar.
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