USD/CAD showed movement in both directions but closed the week almost unchanged at the 1.25 line. There are 8 events this week, highlighted by GDP. Here is an outlook on the major market-movers and an updated technical analysis for USD/CAD. In the US, Janet Yellen’s testimony signaled that a Fed rate hike is not imminent and that wage growth and inflation will need to improve before the Fed makes a move. Canadian inflation levels remain weak, but were within expectations. [do action=”autoupdate” tag=”USDCADUpdate”/]USD/CAD daily chart with support and resistance lines on it. Click to enlarge: Current Account: Monday, 13:30. This quarterly indicator is closely linked to currency demand, as foreigners must purchase Canadian goods and services with Canadian dollars. The current account deficit improved to C$ -8.4 billion in Q3, easily beating the estimate of C$ -10.3 billion. This positive trend is expected to continue, with an estimate of C$-7.4 billion for Q4. GDP: Tuesday, 13:30. GDP is one of the most important economic indicators and should be treated as a market-mover. The indicator disappointed in November, with a decline of 0.2%. This marked the indicator’s weakest showing since December. The markets are expecting a turnaround in the upcoming release, with an estimate of 0.1%. RMPI: Tuesday, 13:30. The Raw Materials Price Index continues to post sharp declines, and slipped to -7.6%. Still, this beat the forecast of -8.8%. Another strong decline is expected, with the estimate standing at -6.8%. BOC Overnight Rate: Wednesday, 15:00. The Bank of Canada shocked the markets in February, cutting rates from 1.0% to 0.75%. The markets are not expecting any change in the rates in the upcoming announcement. Ivey PMI: Thursday, 15:00. Ivey PMI was unexpectedly weak in January, slipping to 45.4 points. This was the first time the indicator dropped below the 50-point level since June and was well off the estimate of 53.8 points. The forecast for January stands at 46.2 points. Building Permits: Friday, 13:30. Building Permits shows strong volatility, often leading to readings that are not within expectations. In January, the indicator bounced back with an excellent gain of 7.7%, crushing the estimate of 7.7%. Trade Balance: Friday, 13:30. Trade Balance has been very steady, with the December reading coming in unchanged at $C-0.6 billion. This easily beat the estimate of C$-1.2 billion. The markets are expecting a strong turnaround, with a gain of C$ +0.3 billion Labor Productivity: Friday, 13:30. This indicator is released on a quarterly basis, magnifying the impact of each release. In Q3, the indicator posted a weak gain of 0.1%, within expectations. Little change is expected in the upcoming release. * All times are GMT USD/CAD Technical Analysis USD/CAD opened the week at 1.2534 and climbed to a high of 1.2663. The pair then reversed directions and dropped to a low of 1.2388, just shy of support at 1.2387 (discussed last week). USD/CAD closed the week at the 1.2502. Live chart of USD/CAD: [do action=”tradingviews” pair=”USDCAD” interval=”60″/]Technical lines, from top to bottom We begin with resistance at 1.2924. This line was last tested in March 2009. 1.2711 is the next line of resistance. 1.2541 continued to see action last week. This line is currently a weak resistance line. 1.2387 is an immediate support line. It held firm as the pair touched a low of 1.2388. 1.2230 is the next support level. 1.2114 is the final support line for now. This line switched to a support role late January when the US dollar started a strong rally. I am bullish on USD/CAD Canadian growth continues to lag behind its southern neighbor, and this could be underscored by weak GDP and inflation data this week. In the US, Fed chair Yellen tried to dampen expectations about a mid-rate hike in her Congressional testimony, but a strong NFP could boost the June rate expectations. In this week’s podcast, we cover Questions for traders, State of Fed, Greek crisis, oil, gold and GBP Subscribe to our iTunes page 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 ForecastMinors share Read Next AUD/USD Forecast Mar. 2-6 Kenny Fisher 7 years USD/CAD showed movement in both directions but closed the week almost unchanged at the 1.25 line. There are 8 events this week, highlighted by GDP. Here is an outlook on the major market-movers and an updated technical analysis for USD/CAD. In the US, Janet Yellen's testimony signaled that a Fed rate hike is not imminent and that wage growth and inflation will need to improve before the Fed makes a move. Canadian inflation levels remain weak, but were within expectations. [do action="autoupdate" tag="USDCADUpdate"/] USD/CAD daily chart with support and resistance lines on it. Click to enlarge: Current Account: Monday, 13:30.… 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.