The Canadian dollar gained more ground last week, as USD/CAD dipped below the 1.26 line for the first time since mid-January. There are only two events in the upcoming week. Here is an outlook for the highlights and an updated technical analysis for USD/CAD.
- Corporate Profits: Wednesday, 13:30. Corporate Profits soared 44.9% in Q4 of 2020, after two straight declines. Will we see another gain for the first quarter of the year?
- Raw Materials Price Index: Friday, 13:30. This inflation indicator jumped 3.5% in December, up from 0.6% beforehand. We now await the January data.
Technical lines from top to bottom:
We start at 1.3041, an important monthly resistance line.
1.2916 (mentioned last week) was last tested in resistance in mid-December.
1.2834 has held in resistance since the first week in February.
1.2712 is next.
1.2587 is the first support level. It could break early in the week if the pair’s downtrend continues.
1.2459 has held in support since February 2018.
1.2329 is the final support level for now.
I am bearish on USD/CAD
The Canadian dollar has now reeled off three winning weeks against the US dollar, which remains under pressure. With the Biden stimulus package set to be approved by Congress shortly, the US dollar could continue to retreat.
- EUR/USD forecast – for everything related to the euro.
- GBP/USD forecast – Pound/dollar projections.
- AUD/USD forecast – analysis for the Aussie dollar.
- USD/CAD forecast – Canadian dollar predictions.
- Forex+ weekly forecast – Outlook for the major events of the week.