Dollar/CAD finished most of the week trading in restricted ranges as no news on the trade front helped the loonie strengthen. The upcoming week includes just a single Canadian occasion, leaving the market mindset as the essential driver of the match. Here are the highlights and an updated technical analysis for USD/CAD.
Canada’s Foreign Securities Purchases missed the mark regarding desires, however, producing deals were on the ascent. Oil costs stayed on the back foot, putting some weight on the C$. In the US, Fed Chair Jerome Powell communicated trust in the US economy and made an effort not to discuss exchange relations, helping the greenback. US retail deals were hardly superior to anticipated.
USD/CAD Fundamental Analysis:
1. Wholesale Sales: Monday, 12:30. The volume of sales at the wholesale level is employed by as a prediction of future retail sales. An unpretentious rise of 0.1% was seen in April and we may see an improved outcome this time.
USD/CAD Technical Analysis:
USD/CAD floated in a run, testing the 1.3255 level seen a week ago, in the long run coming back to the range.
Technical lines from top to bottom:
1.3795 held the pair down in April. 1.3560 capped the pair back in May 2017 and is a high point.
1.3385 was the peak on two occasions in late June. 1.3350 follows close by after serving in both directions in July 2017.
1.3255 was a line of support when the pair traded on high ground in late June. 1.3220 served as resistance for the pair in mid-July.
1.3125 is the high point for 2018 until it was broken. 1.3065 was the high point in May and also earlier in the year.
1.30 is a round number that is eyed by many. 1.2920 capped the pair in late April and early May as well. 1.2820 served as support in early May.
I remain bullish on USD/CAD
Despite the backwind from the BOC, the menace of deteriorating trade relations with the US will likely weigh on the economy and the Canadian dollar.