Dollar/CAD traded in range amid mixed movements from oil prices and from local data. The upcoming week features the all-important OPEC meetings, a speech by Poloz, and GDP. Here are the highlights and an updated technical analysis for USD/CAD.
The price of oil resumed its rally, with WTI topping $58. However, Canada’s domestic data was quite disappointing: manufacturing sales dropped by 1.2% and retail sales advanced by only 0.1%. This limited any attempts for a breakthrough by the Canadian dollar. The softer USD, due to worries about inflation, helped keep things stable.
USD/CAD daily chart with support and resistance lines on it. Click to enlarge:
* All times are GMT
USD/CAD Technical Analysis
Dollar/CAD was initially capped by the 1.2790 level (discussed last week).
Technical lines from top to bottom:
1.3160 provided support back in June. 1.3080 was a line of resistance to the pair in its recovery attempts in July.
1.2920 capped the pair in late October. It is followed by 1.2840 capped the pair in mid-November and also had a role in the past.
1.2790 was the high in mid-November and serves as resistance. 1.2665 was a was a double-bottom in November and works as strong support.
It is followed by 1.26, a round number that worked as resistance in October. 1.2540 capped the pair in early October when it traded in a narrow range.
1.2435 was a cushion for the pair during the month of October. 1.2335 gave support to the pair in late September.
1.22 is a round number and also worked as support a few years ago. 1.2065 is the (current) swing low of September 2017. It is followed by the obvious level of 1.20.
I remain bullish on USD/CAD
While OPEC could lift the oil prices and the loonie, the economy is slowing down and this could weigh on the C$ once again.
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