May 18- Economic Events Outlook – Trading Canadian Pairs
Arslan Butt • 2 min read
Happy Friday, traders.
Today’s fundamental side is loaded with high impact economic data from Canada. The commodity currency is already in demand due to a massive rise in the prices of Crude Oil. Let’s take a look at the top economic events and a trade idea…
Economic Event’s Watchlist
Canadian Dollar – CAD
Core Retail Sales m/m – The 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 the economy. The Statistics Canada is due to release the figure at 12:30 (GMT). It looks like the Canadian retail sales are struggling this year. The figure plunged to -1.8% in Feb and showed a 0% gain in April. Let’s see what we get this month.
CPI m/m – The Canadian inflation is also suffering lately despite the improved crude oil prices. In April, the CPI figure came out at 0.3%, down beating the 0.4% forecast, putting pressure on the BOC (Bank of Canada) to keep the interest rates on hold.
Traders, since both of the high impact events, are forecasted to be positive (better than the previous one), the Loonie is likely to remain supported. Investors are likely to stay bullish on the Loonie in order to price in the positive dataset.
USD/CAD – EMA Crossover
During the Asian session, the USD/CAD continued to trade bullish above a strong support level of $1.2760. The pair just had a 50- periods EMA bullish crossover on the 4- hour chart. The crossover signals investors’ strong buying intentions. However, the immediate resistance can be found near $1.2840 and 1.2915. Additionally, the RSI and Stochastics are also pointing upward and we may see a bullish crossover in the RSI.
USD/CAD – Key Trading Levels
Key Trading Level: 1.2811
USD/CAD – Trading Plan
The idea is to stay bearish below $1.2835 and bullish above $1.2750 before the news release. Whereas, the violation of $1.2835 can drive further buying opportunity until $1.2915. Good luck and have an awesome weekend!