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USDCAD bearish below 1.3200 aiming 1.2700

General outlook for the pair:
  • The pair moved in the last weeks between 1.3200 and 1.2950.
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CAD performed well last week, Housing Starts 201K VS 213K expected, NHPI m/m +0.1% as expected, next week focus will be on Foreign Securities Purchases, Manufacturing Sales m/m, CPI m/m and Core Retail Sales m/m.

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Failed again to close week below 1.3000 but strong bearish momentum existed...

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USD performed so worst last week, Empire State Manufacturing Index 19.0 VS 23.2 expected, Building Permits 1.23M VS 1.31M expected, Philly Fed Manufacturing Index 22.9 VS 17.5 expected, next week focus will be on CB Consumer Confidence, Federal Funds Rate, FOMC Statement, FOMC Economic Projections, Core Durable Goods Orders m/m, Final GDP q/q, Fed Chair Powell Speaks and Core PCE Price Index m/m.

in other hand,

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CAD performed so well last week, Foreign Securities Purchases 12.65B VS 4.35B expected, Manufacturing Sales m/m +0.9% VS +1.0% expected, CPI m/m -0.1% as expected, Core Retail Sales m/m +0.9% VS +0.6% expected, next week focus will be on BOC Gov Poloz Speaks and GDP m/m.

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Finally pair closed below 1.2940 and this could give pair bearish momentum for next week...

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USDCAD topped and ready to fall below 1.3000

General outlook for the pair:
  • The pair moved in the last weeks between 1.3300 and 1.3000.
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After Trump speech about FED president and he should be cheap money machine, USD got hit, also especially after Trump lawyer about Trump violation during election, all of these give an ax for USD, next week with light data but any improvements from Trump may drive markets strongly.

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Pair should break below 1.2950 next week to make a bearish direction, next week critical for bears.

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USD lost ground but pared most of last week losses, CB Consumer Confidence 133.4 VS 126.6 expected, Prelim GDP q/q 4.2% VS 4.0 expected, Core PCE Price Index m/m +0.2% as expected, Chicago PMI 63.6 VS 63.0 expected, next week focus will be on ISM Manufacturing PMI, ADP Non-Farm Employment Change, ISM Non-Manufacturing PMI, Non-Farm Employment Change and Average Hourly Earnings m/m, in other hand,

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CAD did not perform well last week, Current Account came at -15.9B VS -15.3B, GDP m/m 0.0% VS +0.1% expected, next week focus will be on Trade Balance, Overnight Rate, Employment Change and Unemployment Rate.

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Pair failed again to finish week below 1.2950, still reluctant to make clear direction...

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USDCAD to close around 1.3000 next month

General outlook for the pair:
  • The pair moved in the last weeks between 1.2800 and 1.3400.
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USD performed well last week, JOLTS Job Openings 6.64M VS 6.88M expected, Core PPI m/m +0.3% VS +0.2% expected, CPI m/m +0.2% VS +0.2% expected, Prelim UoM Consumer Sentiment at 97.1 VS 98.1 expected, next week focus will be on Core Retail Sales m/m, Empire State Manufacturing Index, Fed Chair Powell Testifies and Building Permits, in other hand, CAD performed well last week, BOC raised Overnight Rate to 1.5% as expected, next week focus will be on Manufacturing Sales m/m, CPI m/m and Core Retail Sales m/m.

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Pair still capped below 1.3200, but found strong demand around 1.3100.

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USD pared most of last week gains and closed week in negative territory, Retail Sales m/m +0.5% VS +0.4% expected, Building Permits 1.27M VS 1.33M expected, Philly Fed Manufacturing Index 25.7 VS 21.6 expected, next week focus will be on Existing Home Sales, Core Durable Goods Orders m/m and Advance GDP q/q, in other hand, CAD performed well last week, Manufacturing Sales m/m 1.4% VS -1.1% last, CPI m/m +0.1% as expected, Core Retail Sales m/m +1.4% VS +0.6% expected, next week focus will be on Wholesale Sales m/m.

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Failed again above 1.3250, pair seemed topped and ready to fall but 1.3050 will be critical for both bulls and bears.

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Pair still moving up and down around expected target and still expect consolidation around this level.

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USDCAD bulliah aiming 1.3200 and above

General outlook for the pair:
  • The pair moved in the last weeks between 1.2700 and 1.3000.
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Pair jumped above 1.3100 as expected, 1.3250 still in the way, still bullish.

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USD performed well but lost all of week gains and closed week in negative, Building Permits 1.30M VS 1.35M expected, Existing Home Sales 5.43M VS 5.52M, Philly Fed Manufacturing Index 19.9 VS 28.9 expected, next week focus will be on CB Consumer Confidence, Core Durable Goods Orders m/m and Core PCE Price Index m/m, in other hand, CAD performed worst last week, CPI m/m +0.1% VS +0.4% expected, Core Retail Sales m/m -0.1% VS +0.5% expected, next week focus will be on BOC Gov Poloz Speaks, GDP m/m and BOC Business Outlook Survey.

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Pair jumped to 1.3380 before failing again to 1.3250 but still above it, 1.3250 will be critical next week as both bulls and bears will try to defend around it.

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USD pared most of last week gains, CB Consumer Confidence 126.4 VS 127.6 expected, Core Durable Goods Orders m/m -0.3% VS +0.5% expected, Final GDP q/q at 2.0% VS 2.2% expected, Core PCE Price Index m/m +0.2% as expected but Personal Spending m/m +0.2% VS +0.4$ expected, next week focus will be on ISM Manufacturing PMI, ADP Non-Farm Employment Change and Non-Farm Employment Change, in other hand, CAD performed so well last week, GDP m/m +0.1% VS 0.0% expected, next week focus will be on Employment Change and Trade Balance.

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Pair failed again below 1.3400 as expected, 1.3000-1.3050 should hold to rescue up trend.

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USDCAD bullish aiming 1.3000 and above

General outlook for the pair:
  • The pair moved in the last weeks between 1.2950 and 1.2500.
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USD performed well last week but erased most of early week gains, JOLTS Job Openings came at 6.55 M VS 6.02M expected, CPI m/m came at +0.2% VS +0.3% expected, Core CPI at +0.1% VS +0.2 expected, next week focus will be on Retail Sales m/m, Building Permits and Philly Fed Manufacturing Index, in other hand, CAD performed well in last week, Building Permits m/m came at 3.1% VS 2.0%, Employment Change came at -1.1K VS 17.8K expected, Unemployment Rate at 5.8% as expected, focus in next week will be on CPI data.

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As expected 1.2750 still play rule of strong support but pair should close above 1.2800 to return to bullish.

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USD performed well last week, retail sales came at 0.3% VS 0.5% expected, Empire State Manufacturing Index 20.1 VS expected 15.1, Building Permits came at 1.35M as expected, Philly Fed Manufacturing Index at 34.4 VS 21.1 expected, next week focus will be on FOMC Meeting Minutes and Durable Goods Orders m/m, in other hand, CAD did not perform well last week as Manufacturing Sales m/m came at 1.4% VS 1.1%, CPI came at 0.3% as expected, but Core retail sales came at -0.2% VS +0.5% expected, no week with no significant data except for OPEC-JMMC Meetings.

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Still above 1.2750 support and thus till bullish, only break below 1.2700 can open door for bears again.

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in notable USD demand, pair found buyers and closed day and week around top, need to close above 1.3000 to confirm bullish again.

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USDCAD bullish above 1.3000

General outlook for the pair:
  • The pair moved in the last weeks between 1.2600 and 1.3100.
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USD performed well last week, better data was feature for US data as retails sales came at +0.6% VS +0.4% expected, Housing starts at 1.32 M VS 1.27M expected, industrial production came at 0.5% VS 0.3% expected, next week will be with important data, CB consumer Confidence, Durable goods orders and Advance GDP, in other hand,

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CAD performed worst last week, BOC decision and statement was not encouraging as BOC still suspected that inflation still temporary and still worry about US measures against Canada, CPI data also was not helpful and ensured BOC thought about inflation, lack of significant data next week but BOC Gov Boloz will speak on Monday.

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1.252 was so impressive as it turned pair sentiment from strong bearish to strong bullish.

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USD was the best last week as it benefited from strong data, Existing Home sales 5.6M VS 5.55M expected, CB Consumer Confidence at 128.7 VS 126.0, Durable Goods Order m/m at 2.6% VS 1.6% expected, Advance GDP came at 2.3% VS 2.0% expected, next week focus will be in FOMC meeting and then Non Farm employment data, in other hand,  CAD performed worst last week Vs majors, no significant data was last week but Wholesale Sales was -0.8% worse than expected at +0.3%, Next week will be important for CAD as we wait GDP m/m and then Trade Balance data.

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Pair moved in narrow range between 1.2800 and 1.2900, still bullish but need momentum.

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USDCAD bullish above 1.2500

General outlook for the pair:
  • The pair moved in the last weeks between 1.2250 and 1.2750.
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Topped just above 1.3000 but closed week around 1.2800, weekly close so warning for bulls, take care.

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USD performed well closed week advanced Vs most majors, US data last week were near expectation, CPI data were as expected, retail sales with no surprise but markets still priced 0.25 rate hike next Wednesday, all eyes will be on FOMC statement next week and especially on Dot Plot view, in other hand, CAD performed worst VS majors, with no significant data last week but manufacturing sales fell -1.0% VS -0.8% expected, CAD still under pressure due to expected trade wars from US, next week CPI and retails sales data will be the most important.

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Finally pair closed above 1.3000 reaching 1.3100 still seen bullish aiming 1.3150-1.3200.

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Pair found buyers again around 1.2800, now holds around 1.2880, 1.3000-1.2800 is the expected range for the last days of the month.

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Closed last week and day very near to excepted target, I hope consolidation will continue in the last hours of contest.

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USDCAD to continue falling but will close above 1.2000

General outlook for the pair:
  • The pair moved in the last weeks between 1.3000 and 1.2300.
  • The pair is expected to move in the next month between 1.2500 and 1.1900 as it faces clusters of daily/weekly tops and bottoms.

Pair recent direction : Down

Expected rate of the pair 1st of March, 12:00 GMT:
1.2081
Expected market sentiment: Bearish

Chart of major support (S) and resistance (R):

Weekly chart

Chart of expected scenario:


Daily chart
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USD did not perform well despite of strong US data, as USD CPI came at +0.5% VS +0.3% expected,Core CPI +0.3% VS +0.2%, Housing starts numbers jumped, building permits also jumped and import priced surged +1%, but all of this did not help USD which faces technical difficulties, in other hand, CAD did not perform well as still affected by last week employment data and lower oil prices and NATFA issue still to be driver for CAD movement.

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moved in narrow range around 1.2500, still close below 1.2500 needed to sell again.

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In general last week was quiet for major pairs, USD moved a little up as dollar index (DXY) opened the week at 89.00 and closed at at 0.8980 with minor gains, these gains came with FOMC meeting minutes which implied that stronger economy boosts chance for interest rate hike, unemployment claims came at 222.00K Vs 229.00K expected, next week will be critical for USD as FED Chair Powell testifies and with quarter GDP.

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CAD hit last week by most majors as Core retail sales were so bad as it came at -1.8% VS 0.1% expected, but after Strong CPI date at 0.7% VS 0.4% expected, pair recovered most of the week losses.

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Pair jumped to 1.2750 before falling to 1.2600 after strong CPI, pair still bullish above 1.2500.

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USDCAD still able to overcome 1.3000

General outlook for the pair:
  • The pair moved in the last weeks between 1.2600 and 1.30000.
  • The pair is expected to move in the next month between 1.2500 and 1.3400 as it faces clusters of daily/weekly tops and bottoms.

Pair recent direction : Range

Expected rate of the pair 1st of February, 12:00 GMT:
1.3261
Expected market sentiment: Bullish
Chart of major support (S) and resistance (R):


Weekly chart

Chart of expected scenario:

Daily chart
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khalidamassi avatar

After strong jobs data, pair quickly break below 1.2500 reaching 1.2350 before closing around 1.2400, this so strong bearish signal but any daily close above 1.2500 will be good idea to buy pair again.

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US dollar last week felt sharply and closed the week at the lowest level in 3 years, Most Us data was near expectation with no significant harm but USD seemed felt sharply due to lower differential yields which play in favor of currencies against USD, In other hand, CAD dollar still helped strongly with strong gains of oil, CAD but expected US exit from NATFA agreement put strong pressure on CAD and this still expected to weight in the near future,

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1.2350 still play as concrete support, only clear break and close below open the door for bears.

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US dollar last week continued falling but in narrow range after last week collapse, USD still under pressure due to US government shutdown expectation and due to technical difficulties for USD against majors, In other hand, CAD dollar got a boost from BOC rate hike and still helped with oil gains but worries about NATFA agreement put strong pressure on CAD and this still expected to weight in the near future.

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Psir falling capped for the third week around 1.2350 and tis good sign for bulls but any break below 1.2350 will cancel any buying opportunity.

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USDCAD still bullish aiming 1.3000 and above

General outlook for the pair:
  • The pair moved in the last weeks between 1.2400 and 1.2900.
  • The pair is expected to move in the next month between 1.2500 and 1.3400 as it faces clusters of daily/weekly tops and bottoms.

Pair recent direction : Up

Expected rate of the pair 2nd of January, 12:00 GMT:
1.3261
Expected market sentiment: Bullish

Chart of major support (S) and resistance (R):


Weekly chart

Chart of expected scenario:

Daily chart
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khalidamassi avatar

Pair moved between 1.2650 and 1.2900, break above or below will make dominat direction, so be careful.

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USD got a hit at last FOMC meeting after warning about inflation development but then got a boost after news that new tax code is going ahead and very near to appear, In other hand, CAD still vulnerable due to lower oil prices and lower GDP in last quarter but BOC still optimistic but this not persuade CAD investors so much.

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Pair still play in the daily range, last week moved between 1.2700 and 1.2900, still need abreak above or below to make a direction.

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US dollar last week did not performed well despite of Trump approval of tax law, till now USD seemed not benefited from the tax cut and may be yearend was not in favor for USD, In other hand, CAD dollar was helped at week beginning with strong CPI and retails sales numbers but then lagged by lower GDP data and with dovish speech by BOC Governor.

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Pair still stuck in the daily range of last week without any break in ant direction...

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