The Canadian dollar posted small gains last week, as USD/CAD ended the week just above the 1.21 level. There are six economic releases in the upcoming week. Here is an outlook for the highlights and an updated technical analysis for USD/CAD. It was a light calendar for Canadian releases. Manufacturing Sales rebounded in March with a strong gain of 3.5%, up from -1.6% and matching the forecast. In the US, April inflation was much stronger than expected. Headline CPI (YoY) climbed 4.2%, up from 2.6% beforehand. PPI also climbed sharply, with a gain of 6.2%, up from 4.2% beforehand. Despite the surge in inflation, Fed members reiterated that there are no plans to taper the massive stimulus program. Retail Sales for March (MoM) disappointed. The headline reading slowed to 0.0%, down from 9.8% in the previous release and shy of the estimate of 1.0%. Core Retail Sales contracted by 0.8%, down sharply from 8.4% and shy of the forecast of 0.5%. USD/CAD daily graph with resistance and support lines on it. Click to enlarge: Housing Starts: Monday, 12:15. Housing Starts jumped to 335 thousand in March, up from 246 thousand. The April release is expected to slow to 250 thousand. Foreign Securities Purchases: Wednesday, 12:30. Foreign investments in Canadian securities jumped to C$8.52 billion in March, a 3-month high. We now await the April data. CPI Report: Wednesday, 12:30. Headline CPI (YoY) is expected to rise to 4.3% in April, up from 3.2%. BoC Core CPI, the central bank’s preferred gauge, is projected to rise to 1.3%, slightly lower than the March read of 1.4%. ADP Employment Report: Thursday, 12:30. The March ADP report indicated that the economy created 634 thousand new jobs, an outstanding number. Will we see another sharp gain in April? BoC Financial System Review: Thursday, 15:00. The Bank of Canada publishes its overview of the financial system twice a year. Apart from data about the banks’ situation, the publication also includes economic data. Retail Sales: Friday, 12:30. Retail Sales (MoM) sparkled in February, as the headline and core readings each produced gains of 4.8%. The March consensus stands at 3.7% for the headline read and 4.0% for core retail sales. Consumer spending is closely watched by investors and significant deviation from expectations could certainly move the Canadian currency. Technical lines from top to bottom: We start with resistance at 1.2427. 1.2350 has held since late April. 1.2277 is next. 1.2125 is an immediate resistance line. 1.2052 is the first line of support. 1.1985 (mentioned last week) follows. 1.1827 is the final line of support for now. I am bearish on USD/CAD The Canadian dollar has not posted a losing week since March, as the US dollar has been unable to sustain much positive momentum. With commodity prices at high levels and global economic conditions improving, the commodity-based Canadian dollar could continue to rally. Follow us on Sticher or iTunes Further reading: 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. Safe Trading! Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher Canadian Dollar ForecastMinorsWeekly Forex Forecasts share Read Next Ethereum Classic Price Prediction: ETC offers new opportunity to gain 50% FX Street 2 years The Canadian dollar posted small gains last week, as USD/CAD ended the week just above the 1.21 level. There are six economic releases in the upcoming week. Here is an outlook for the highlights and an updated technical analysis for USD/CAD. It was a light calendar for Canadian releases. Manufacturing Sales rebounded in March with a strong gain of 3.5%, up from -1.6% and matching the forecast. In the US, April inflation was much stronger than expected. Headline CPI (YoY) climbed 4.2%, up from 2.6% beforehand. 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