April 20 – Economic Events Outlook – A Fine Day to Trade Loonie
Arslan Butt • 2 min read
Happy Friday, traders.
Who’s up for trading the Canadian dollar today? Today’s economic calendar is loaded with Canadian economic data. The commodity currency is already in demand due to a massive rise in the prices of Crude Oil.
Watchlist – Key Economic Events Today
Canadian Dollar – CAD
Canadian inflation has been improving lately, putting pressure on the BOC (Bank of Canada) to hike interest rates. In March, the CPI figure came out at 0.6% as opposed to a 0.4% forecast. Today, economists are expecting a slight drop in inflation growth, from 0.6% to 0.4% this month.
Core Retail Sales m/m
This figure shows a change in the total value of sales at the retail level, excluding automobiles. A higher number of retail sales signals a growth in an economy. The Statistics Canada is due to release the figure at 12:30 (GMT) with a forecast of 0.4% vs. 0.9% beforehand.
Since both of the high impact events are forecasted to be negative (worse than expected), the Loonie is likely to remain under pressure. Investors are likely to stay bearish on the Loonie in order to price in the negative dataset.
USD/CAD – EMA Crossover
During the Asian session, the Loonie continued to trade bullish above the strong support level of 1.2550. The pair just had a 50-periods EMA bullish crossover on the 4-hour chart. The crossover signals buyers’ strong buying intentions. However, the immediate resistance can be found near 1.2700 and 1.2775. Additionally, the RSI and Stochastics are massively overbought above 80, signaling the potential for a bearish reversal.
USD/CAD – 240 – Mins Chart
USD/CAD – Key Trading Levels
Key Trading Level: 1.2643
USD/CAD – Trading Plan
Before the news, I will be looking to stay bullish above $1.2645 with a stop below $1.2600 and a take profit at $1.2700 and $1.2765. before taking sell position. The stop needs to be near $1.29350 along with a take profit of $1.2810 and $1.2775.
Good luck and have an awesome weekend!