USD/CAD Forecast April 17-21 -

USD/CAD Forecast April 17-21

Apr 16, 2017Jeremy ParkinsonFinance0

USD/CAD reversed directions last week and dropped 90 points. The pair closed the week at 1.3318. This week’s key event is CPI. Here is an outlook on the major market- movers and an updated technical analysis for USD/CAD.

In the US, consumer indicators were soft, as CPI and retail sales reports missed their estimates. However, employment and consumer confidence beat expectations. In Canada, the BoC maintained rates at 0.50% and Manufacturing Production posted its first decline in four months.

Updates:

USD/CAD daily graph with support and resistance lines on it. Click to enlarge:

Foreign Securities Purchases: Tuesday, 12:30. This indicator is directly linked to currency demand as foreigners must purchase Canadian dollars in order to buy Canadian securities. In January, purchases slipped to C$6.20 billion, well short of the forecast of C$9.45 billion. The downward trend is expected to continue, with an estimate of C$5.21 billion.

BoC Senior Deputy Governor Carolyn Wilkins Speech: Tuesday, 16:45. Wilkins will speak at an event in Toronto. A speech which is more bullish than expected is bullish for the Canadian dollar.

BoC Senior Deputy Governor Carolyn Wilkins Speech: Wednesday, 17:00. Wilkins will participate in a panel sponsored by the IMF. The markets will be looking for clues regarding the BoC’s future monetary policy.

CPI: Friday, 12:30. This is the key event of the week. CPI dropped to 0.2% in February, down from 0.9% a month earlier. Still, this matched the forecast. The estimate for March stands at 0.4%.

USD/CAD Technical Analysis

USD/CAD opened the week at 1.3407 and quickly climbed to a high of 1.3426. The pair dropped to a low of 1.3223 late in the week, as resistance held at 1.3212 (discussed last week). USD/CAD closed the week at 1.3318.

Technical lines, from top to bottom

We start with resistance at 1.3757.

1.3648 was an important support level in February.