Dollar/CAD turned around once again and it seems that the comeback of the Canadian dollar is over. The upcoming week features the all-important jobs report and a few other figures. Here are the highlights and an updated technical analysis for USD/CAD.
Canada’s GDP shrank in January 2018, the first monthly drop in a year. This came in stark contrast to the upgrade in US Q4 2017 growth, at 2.9% annualized according to the final figure. NAFTA negotiations saw further advances but the good news was already priced in. Oil prices stalled after gaining earlier.
USD/CAD daily graph with support and resistance lines on it. Click to enlarge:
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USD/CAD Technical Analysis
Dollar/CAD initially dropped to lower ground, hitting 1.2810, just above the 1.2790 level discussed last week. It then turned up, closing the week closer to 1.29.
Technical lines from top to bottom:
1.3180 was a support line in 2017 and now turns into resistance. 1.3125 is the high point for 2018 so far.
1.30 is a round number that is eyed by many. 1.2920 was a triple top in late 2017 and switches positions.
1.2810 provided support in late March. 1.2760 was a swing high in late February.
1.2665 was a was a double-bottom in November and works as strong support. It is followed by 1.26, a round number that worked as resistance in October.
I am bullish on USD/CAD
The good news is already priced into the Canadian dollar and not all the good news is priced into the US dollar. The rise could continue.
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