The
Canadian Dollar has been gaining strength today versus the greenback, as the
Bank of Canada prepares to make its speech on Wednesday. Let us see how the
central bank moves the USD/CAD, but for now it seems like it wants to retrace
to the 1.0700 level as shown on the 4 hour chart below. That level could act as
a very good support for the pair and make it stall or bounce from there. To the
upside, the 200 EMA, blue line, around the 1.0756 level could be a good
resistance for the pair.
The CAD was the main loser last week. All losses were recorded on Friday, after the release of unemployment data, which unexpectedly rose 7.0% last month to 7.1% in June. The Canadian economy lost 9400 jobs last month, a big difference compared to the 20 000 jobs that were expected to have arisen. These figures worse than expected contrast with recent gains that the country had in retail sales, in the manufacturing PMI and various indicators related to real estate, which confused investors who anticipated a more hawkish tone semanana this meeting of the Bank of Canada.
ReplyDeleteI agree with the analysis, good point.
ReplyDeleteyou are right i agree on that
ReplyDeleteGood analysis! I´ll be watching to those levels.
ReplyDeletegood point of view lets see what the bank of canada will do
ReplyDeleteGood analysis, thanks.
ReplyDelete