USD/CAD Forecast | Daily Technical Forecast for January 20, 2017
USD/CAD Technical Overview
Yesterday Closed 1.3319
Today Open 1.3319
Day’s Range 1.3285 – 1.3331
52 wk Range 1.2458 – 1.4541
1-Year Return – 8.12%
USD/CAD Technical Support and Resistance
USD/CAD pair possibly will find the immediate support at 1.3268. If, market breaks the first support then it will go for the following support to test. Following
supports are 1.3244 and 1.3204.
On the other side the market has immediate resistance 1.3348. If, market breaks the primary resistance level then, market will go for the new resistance level 1.3372
USD/CAD Fundamental Analysis
The USD/CAD continued to trade strongly as the effects of the BOC economic policy continued to be felt in the CAD and the CAD continued to trade weakly all across the board as a result of this. The pair trades just above 1.3300 as of this writing and unless there is some drastic weakness in the dollar, which is quite unlikely, we believe that the pair would continue to consolidate near the highs of its range for today and in the short term as well.
The BOC had made it clear that the Canadian economy has not changed much over the last few months and continues to be weak and this may also warrant a change in the interest rates over the next few months. The data from Canada over the last few weeks have been pretty good and have not yet set off alarms as yet but the lower oil prices, on which the Canadian economy is dependent upon, should be a matter of concern for the BOC and it is only a matter of time before it starts reflecting on the data.
The level of 1.3500 seems to be the first challenge for this uptrend and once this level is cleared, then the market should focus on the medium term target of 1.4000 which we believe would be achieved easily by the end of the first half of the year as the Fed raises the rates and the BOC looks to cut the rates.
Looking ahead to today, we have the retail sales and CPI data from Canada that will be released towards the NY session and any sort of weakness in any of these data should confirm the weakness in the Canadian economy that the BOC seems to fear and we could then see the pair pushing above 1.3400 and towards 1.3500.