Dollar/CAD moved up and down as the US announced tariffs on China and Canada had a turbulent Friday. What’s next? Monthly GDP stands out in the last week of September. Here are the highlights and an updated technical analysis for USD/CAD.
NAFTA talks are moving slowly and have moved to the backburner for now. Another trade front has warmed up: the US announced new tariffs on Chinese goods worth $200 billion. The duties come into effect on September 24th. Markets took it with a relative stride. Rising oil prices supported the greenback. Canadian inflation data beat expectations
USD/CAD daily chart with support and resistance lines on it. Click to enlarge:
*All times are GMT
USD/CAD Technical Analysis
Dollar/CAD kicked off the week with a dip below 1.30 (mentioned last week).
Technical lines from top to bottom:
1.3295 held the pair down in mid-July. 1.3220 capped it earlier in the month.
1.3170 served as resistance in mid-August. 1.3100 is a round number that also capped the pair several times in August.
1.3045 separated ranges in mid-September and is a pivotal line. Below 1.3000 we find the mid-August trough of 1.2960. 1.2890 is the initial low seen in late August.
1.2820 was a stepping stone on the way up in late May. 1.2730 provided support earlier in May. Lower, 1.2630 held the pair down back in April.
I am neutral on USD/CAD
Data has been mixed and the impact of the tariffs has been mixed as well. The movement depends on GDP but also on NAFTA headlines which are hard to predict given Trump’s erratic nature.
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