Dollar/CAD moved up in a mixed week, trying to find a new direction amid sliding oil prices. Retail sales stand out in the upcoming week. Here are the highlights and an updated technical analysis for USD/CAD.
Canada’s manufacturing sales and foreign securities purchases both beat expectations but the first ADP jobs report showed a drop in jobs. BOC member Wilkins gave acknowledged that they did not expect the strong growth rate is not sustainable. American lawmakers are struggling to pass the tax cuts that they promised. On the other hand, inflation data beat expectations. Canadian inflation data came out as expected and did not impress.
USD/CAD daily chart with support and resistance lines on it. Click to enlarge:
* All times are GMT
USD/CAD Technical Analysis
Dollar/CAD began the week by testing support at 1.2665, mentioned last week. From there is advanced to challenge 1.2770, trading in a perfect range.
Technical lines from top to bottom:
1.3160 provided support back in June. 1.3080 was a line of resistance to the pair in its recovery attempts in July.
1.2920 capped the pair in late October. It is followed by 1.2860 which worked as support back in July.
1.2790 was the high in mid-November and serves as resistance. 1.2665 was a swing high of a move higher in early September. It is followed by 1.26, a round number that worked as resistance in October.
1.2540 capped the pair in early October when it traded in a narrow range. 1.2410 held the pair cushioned for some time but was eventually broken. 1.22 is a round number and also worked as support a few years ago.
1.22 is a round number and also worked as support a few years ago. 1.2065 is the (current) swing low of September 2017. It is followed by the obvious level of 1.20.
I remain bullish on USD/CAD
The loonie was hardly able to take advantage of rising oil prices and suffers their fall. This is a clear bearish sign. There may be more room for the downside on CAD, upside for USD/CAD.
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