The Canadian dollar improved last week, as USD/CAD closed just below the 1.09 level. This week’s highlights are Wholesale Sales, Core CPI and Core Retail Sales. Here is an outlook on the major events and an updated technical analysis for USD/CAD. Canadian Housing Starts and Manufacturing Sales both beat their estimates, and the Canadian dollar took full advantage. In the US, the news was not as positive, as retail sales and consumer sentiment numbers softened in July. [do action=”autoupdate” tag=”USDCADUpdate”/]USD/CAD daily chart with support and resistance lines on it. Click to enlarge: Foreign Securities Purchases: Monday, 12:30. This indicator is directly linked to currency demand, as foreigners must purchase Canadian dollars in order to buy Canadian securities. The indicator had an outstanding June, jumping to $21.43 billion, a two-year high. This easily beat the estimate of $14.23 billion. The markets are expecting a weaker showing in July, with the estimate standing at $14.68 billion. Wholesale Sales: Wednesday, 12:30. Wholesale Sales jumped 2.2% last month, crushing the estimate of 0.7%. This was the indicator’s sharpest gain since June 2013. The markets are expecting a more modest gain in the upcoming release, of 1.3%. Core CPI: Friday, 12:30. Core CPI excludes the more volatile items found in CPI, making it a more accurate gauge of consumer inflation. The index posted a decline of 0.1% last month, its first decline in 2014. Little change is expected in the July reading, with the estimate standing at a flat 0.0%. Core Retail Sales: Friday, 12:30. This indicator excludes automobile sales, which are included in Retail Sales and can result in a distorted reading. The indicator slipped to 0.1%, down from 0.7% a month earlier. The markets are expecting a strong turnaround in July, with a forecast of 0.6%. Will the indicator meet or beat this rosy prediction? CPI: Friday, 12:30. CPI had its worst reading of the year last month, slipping to 0.1%. However, this did match the estimate. The index is expected to post a decline of -0.1%, which would be the indicator’s first negative reading of the year. Retail Sales: Friday, 12:30. Retail Sales posted a respectable gain of 0.7% last month, edging above the estimate of 0.6%. Little change is expected in the upcoming release, with an estimate of 0.6%. * All times are GMT. USD/CAD Technical Analysis USD/CAD opened the week at 1.0972 and touched a high of 1.0977. The Canadian dollar then pushed higher. The pair fell to a low of 1.0860, as support at 1.0815 (discussed last week) remained firm. USD/CAD closed the week at 1.0894, its lowest level since late July. Live chart of USD/CAD: [do action=”tradingviews” pair=”USDCAD” interval=”60″/] Technical lines, from top to bottom: We begin with resistance at 1.1494. This line has remained intact since November 2006, when the US dollar broke through and continued to rally to a high above the 1.18 line. 1.1369 was breached in October 2008 as the US dollar posted sharp gains, climbing as high as the 1.21 level. This line has remained steady since July 2009. 1.1278 has provided resistance since March. This line marked the start of a rally by the Canadian dollar, which dropped below the 1.09 level. 1.1123 remains a strong resistance line. 1.1054 marked an important resistance line in April and has held firm since then. 1.0944 was easily breached as the Canadian dollar recorded strong gains. It has switched to a resistance role. 1.0815 continues to provide support. It held firm as the pair dropped into the mid-1.08 range. 1.0737 marked a cap in mid-2010, before the US dollar tumbled and dropped all the way into 0.93 territory. 1.0621 marked a low point for the pair in early July. The US dollar has improved sharply since then, as the pair trades close to 1.10. 1.0526 has been a strong support line since late November. 1.0422 was a key support line in mid-November. This is the final line for now. I am bullish on USD/CAD The Canadian dollar had a good week, but upcoming inflation and retail sales data is expected to be soft. Unless these numbers show unexpected strength, the US dollar has a good chance of recovering from last week’s losses. Further reading: For a broad view of all the week’s major events worldwide, read the USD outlook. For EUR/USD, check out the Euro to Dollar forecast. For the Japanese yen, read the USD/JPY forecast. For GBP/USD (cable), look into the British Pound forecast. For the Australian dollar (Aussie), check out the AUD to USD forecast. USD/CAD (loonie), check out the Canadian dollar. 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 GBP/USD Forecast Aug. 18-22 Kenny Fisher 8 years The Canadian dollar improved last week, as USD/CAD closed just below the 1.09 level. This week's highlights are Wholesale Sales, Core CPI and Core Retail Sales. Here is an outlook on the major events and an updated technical analysis for USD/CAD. Canadian Housing Starts and Manufacturing Sales both beat their estimates, and the Canadian dollar took full advantage. In the US, the news was not as positive, as retail sales and consumer sentiment numbers softened in July. [do action="autoupdate" tag="USDCADUpdate"/] USD/CAD daily chart with support and resistance lines on it. Click to enlarge: Foreign Securities Purchases: Monday, 12:30. 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