Canadian Dollar Weekly Forecast: USD/CAD Braces Ahead of Key U.S. Economic Data
Teaser: USD/CAD might be topic to USD particular elements subsequent week because the Canadian greenback stays uncovered to draw back danger.
- CAD below strain regardless of crude oil comeback.
- Jackson Hole inches nearer.
USD/CAD FUNDAMENTAL BACKDROP
The Canadian greenback suffered the identical destiny as the remaining of FX markets final week with the U.S. greenback taking the lead after markets reacted favorably to the buck post-FOMC. Canadian retail gross sales managed to claw again some losses on Friday displaying a gradual and constant enchancment within the retail surroundings. Of course this has not been adjusted for inflation so it is going to be fascinating to see whether or not or not the adjusted determine is web constructive.
From a cimpolite oil perspective, a marked discount in U.S. stockpiles weren’t sufficient to discourage a surging USD with each the API and EIA releases serving to carry crude oil costs. Looking forward, the approaching week is dominated with U.S. centric information with deal with the Jackson Hole Symposium in direction of the tip of the week.
USD/CAD ECONOMIC CALENDAR
Source: DailyFX Economic Calendar
USD/CAD DAILY CHART
Chart ready by Warren Venketas, IG
Price motion on the day by day USD/CAD chart above reveals the current greenback rally pushing up in direction of the 1.3027 (38.2% Fibonacci) resistance zone. We may even see some revenue taking round these ranges which ought to coincide with the Relative Strength Index (RSI) resistance (crimson). From a bullish perspective, the potential bullish EMA crossover (blue) might immediate extra upside ought to the crossover develop additional.
Key resistance ranges:
Key help ranges:
IG CLIENT SENTIMENT DATA: BULLISH
IGCS reveals retail merchants are at the moment prominently SHORT on USD/CAD, with 56% of merchants at the moment holding lengthy positions (as of this writing). At DailyFX we sometimes take a contrarian view to crowd sentiment leading to a short-term bullish bias.
Contact and observe Warren on Twitter: @WVenketas