Entering A Big Week For The USD/CAD
Shain Vernier • 1 min read
The coming week, specifically the next 48 hours, is going to be pivotal for the USD/CAD. With the release of Canadian GDP, crude oil inventories, and BoC Governor Poloz speaking tomorrow, the Loonie will experience significant participation.
Thus far, trade of the USD/CAD has been relatively tame. After rejecting the 1.2900 handle last Friday, price has settled into a tight 46 pip range.
WTI crude has helped the Loonie’s cause throughout the early U.S. session. A flat WTI market has limited the impact of positive U.S. Core Personal Consumption numbers. At press time, the USD/CAD is noncommittal and capable of leaning to the bull or bear.
There are several levels worthy of note facing this market. Here are a few of the most important:
- Resistance(1): Psyche Level, 1.2900
- Support(1): Bollinger MP, 1.2770
- Support(2): 38% Retracement Current Wave, 1.2757
Overview: It will be interesting to watch the trade in the Loonie unfold this week. Ranges have been compressed over the last four sessions — a breakout is on the way, likely tomorrow. If price holds firm above Friday’s low, a move back to the value area surrounding 1.2900 is likely.
Although a secondary market mover, Canadian GDP may have a large bearing on tomorrow’s trade. Analysts project the number to come in positive at 0.3%, up from the previous release of -0.1%. If GDP is reported flat or negative, look for a directional move north from the USD/CAD.