USD/CAD posted sharp gains for a second straight week, gaining 220 points. The pair touched above the key 1.40 line and closed the week at 1.3955, its highest level since May 2004. This week’s key events are GDP and Core Retail Sales. Here is an outlook on the major market-movers and an updated technical analysis for USD/CAD. After months of intense speculation, the Federal Reserve raised interest rates by 0.25 percent. The historic rate hike was not dovish as this small hike is just the start, with plans for additional hikes in 2016. Weak Canadian inflation numbers, and falling oil prices added to the woes of the Canadian dollar, as consumer inflation reports posted declines. [do action=”autoupdate” tag=”USDCADUpdate”/]USD/CAD daily chart with support and resistance lines on it. Click to enlarge: Core Retail Sales: Wednesday, 13:30. This indicator excludes automobile sales, which tend to be very volatile and distort the underlying trend. The indicator has not posted a gain since June, and came in at -0.5% in September, shy of the forecast of -0.3%. GDP: Wednesday, 13:30. This key event is released monthly, and an unexpected reading could quickly affect the direction of USD/CAD. GDP looked dismal in September, contracting by 0.5%. The markets had expected a gain of 0.1%. Will we see an improvement in October? Retail Sales: Wednesday, 13:30. This is the primary gauge of consumer spending. The indicator disappointed in October, with a reading of -0.5%, well off the forecast of +0.1%. It marked the indicator’s weakest reading in five months. * All times are GMT USD/CAD Technical Analysis USD/CAD opened the week at 1.3737 and quickly touched a low of 1.3672. The pair then reversed directions, surging to a high of 1.4001, as resistance held firm at 1.4003 (discussed last week). USD/CAD closed the week at 1.3955. Live chart of USD/CAD: [do action=”tradingviews” pair=”USDCAD” interval=”60″/]Technical lines, from top to bottom We start with resistance at 1.4310. 141.57 was an important cushion in April 2003. 1.4003 follows, just above the psychologically important 1.40 level. It was under strong pressure last week as USD/CAD posted sharp gains. The round number of 1.39 has switched to a support line. It is a weak line. 1.3759 was easily breached last week and has reverted to a support role. 1.3587 was a cap in March 2004. 1.3435 has held firm since early December. It is the final support line for now. I am bullish on USD/CAD The Canadian dollar has plummeted in the past two weeks, losing some 550 points against its US counterpart. The Fed rate hike has sharpened monetary divergence and marks a vote of confidence in the US economy, which should further bolster the US dollar. Our latest podcast is title Get Ahead of the Fed Follow us on Sticher or on iTunes 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. For the kiwi, see the NZDUSD forecast. 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 Dec. 21-25 Kenny Fisher 7 years USD/CAD posted sharp gains for a second straight week, gaining 220 points. The pair touched above the key 1.40 line and closed the week at 1.3955, its highest level since May 2004. This week's key events are GDP and Core Retail Sales. Here is an outlook on the major market-movers and an updated technical analysis for USD/CAD. After months of intense speculation, the Federal Reserve raised interest rates by 0.25 percent. The historic rate hike was not dovish as this small hike is just the start, with plans for additional hikes in 2016. Weak Canadian inflation numbers, and falling oil… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.