Search ForexCrunch

The Canadian dollar had an uneventful week, as  USD/CAD  posted slight losses. The pair closed the week at 1.2259. The upcoming week is very quiet, with only one release this week.  Here is an outlook on the major market-movers and an updated technical analysis for USD/CAD.

In the US, the news was mixed as inflation slipped, while employment and manufacturing numbers beat expectations. The  Federal Reserve statement was clearly dovish, which didn’t help the US dollar. Over in Canada,  inflation met expectations, but manufacturing and retail sales disappointed.

[do action=”autoupdate” tag=”USDCADUpdate”/]

USD/CAD daily chart with support and resistance lines on it. Click to enlarge:

USD_CAD_Forecast.Jun22-26

 

  1. BOC Deputy Governor Lawrence Schembri Speaks:  Thursday, 16:10. Schembri will deliver remarks at an event in Windsor, Ontario. A  speech which is more hawkish than expected is bullish for the Canadian dollar.

* All times are GMT.

 

USD/CAD Technical Analysis

USD/CAD opened the week at 1.2310 and  quickly touched a high  of 1.2360, as support held firm at 1.2387 (discussed last week). The pair then  moved  downwards, touching a  low of 1.2127.  USD/CAD recovered and closed the week at 1.2259.

Live chart of USD/CAD: [do action=”tradingviews” pair=”USDCAD” interval=”60″/]

Technical lines, from top to bottom

With the Canadian dollar posting sharp gains, we  start  at lower levels.

1.2798 has remained intact since mid-March.

1.2646 is the next resistance line.

1.2541 has provided an important cap in June.

1.2387  remains an  immediate support level.

1.2230 was tested in support as USD/CAD posted sharp losses last week.

1.2114 is a strong support level.

1.1995 is situated just  below the symbolic  1.20 level. This line has remained intact since mid-May.

1.1872 is the final support level for now.

I am neutral on USD/CAD

Both the US and Canada posted mixed numbers last week. Although the US economy is looking brighter than its northern neighbor, the lack of confidence from Yellen could weigh on the greenback and prevent a significant upward move.

In our latest podcast we digest the dollar dove dive, update on Greece and preview next week’s events.

Follow us on Stitcher

Further reading: