Dollar/CAD extended its falls, taking advantage of the robust Canadian GDP. The first full week of September is packed with events: the BOC decision and the jobs report stand out. Here are the highlights and an updated technical analysis for USD/CAD.
Excellent Canadian GDP gave the Canadian dollar a big boost. This helped it counter the slide in oil prices. The US dollar showed a lot of weakness, mostly suffering from Yellen’s lack of hawkishness in Jackson Hole but then recovered on strong GDP.
USD/CAD daily graph with support and resistance lines on it. Click to enlarge:
* All times are GMT
USD/CAD Technical Analysis
Dollar/CAD continued pushing lower below the 1.25 level (discussed last week).
Technical lines from top to bottom:
1.30 is towering above. It is followed by 1.2940 which capped the pair in July.
1.2860 was a relatively significant stepping stone on the way down, holding the pair for some time. It is followed by 1.2775, which marked a recovery attempt.
1.27 is a round number and also the top of a short-lived range. 1.2640 was the bottom of that range and a level where the pair reached after bouncing back.
1.2580 is a pivotal line and capped the pair temporarily on its recovery path. 1.25, a very round number, provided support for the pair in August.
1.2410 is a very strong line, serving as the low for 2017 (so far). Further down, we find levels last seen in early 2015. These levels are 1.22 and 1.20.
I turn bearish on USD/CAD
The Canadian dollar seems to have ended its phase of correction and is ready to continue rising. The Canadian economy is outperforming the American one, and this should push USD/CAD lower.
Our latest podcast is titled Everything you need to know for September
Follow us on Sticher or iTunes
- EUR/USD forecast – for everything related to the euro.
- GBP/USD forecast – Pound/dollar predictions
- USD/JPY forecast – analysis for dollar/yen
- AUD/USD forecast – projections for the Aussie dollar.
- Forex weekly forecast – Outlook for the major events of the week.