USD/CAD daily chart with support and resistance lines on it. Click to enlarge:
- Retail Sales Data: Wednesday, 12:30. As the primary gauge of consumer spending, retail sales is carefully monitored. Retail sales jumped 0.8% in February, after three successive declines. Core Retail Sales posted a strong gain of 0.6% in February, above the estimate of 0.2%. Will we see an improvement in the March numbers?
- Wholesale Sales: Thursday, 12:30. Wholesale sales slowed in February to 0.3%, but still beat the forecast of 0.1%.
- Corporate Profits: Thursday, 13:30. Canadian corporations showed a sharp drop in profits during Q1, falling 3.9%. The decline comes after gains in profits in three straight quarters. Data for Q2 is due now.
* All times are GMT
USD/CAD Technical Analysis
Technical lines from top to bottom:
1.3915 was an important resistance line back in February 2016.
1.3757 has held in resistance since May 2017.
1.3660 was the high point for USD/CAD in December.
1.3547 capped USD/CAD in June 2017. 1.3445 (mentioned last week) remained relevant throughout the week. It starts the upcoming week as a weak support line.
1.3385 is next. Close by is 1.3350.
Lower, 1.3265 was the high point in mid-November. 1.3225 has held in support since early March.
1.3175 was a swing low in late November.
1.3125 is the final support level for now.
I remain bullish on USD/CAD
The escalation in trade tensions between the U.S. and China has dampened risk appetite. This has weighed on risk currencies as investors seek safe-haven alternatives, such as the U.S. dollar. This could mean headwinds for the Canadian dollar.
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