USD/CAD Forecast March 4-8 – Canadian Dollar Slides On GDP Decline

*All times are GMT

USD/CAD Technical Analysis

USD/CAD broke above 1.3265 (mentioned last week) on Friday, when the pair climbed sharply.

Technical lines from top to bottom:

1.3660 was the high point for USD/CAD in December.

1.3560 capped USD/CAD in May 2017. Next, 1.3445 was the peak in early December.

1.3385 was the high point seen in May. 1.3350 was a stepping stone on the way and on the way down around the same time.

Lower, 1.3265 was the high point in mid-November. 1.3225 was tested in support in the middle of the week.

1.3175 was a swing low in late November. It is followed by 1.3125 which was also a low point, earlier in the month.

1.3048 has provided support since early November.

1.2970 is just below the round level of 1.3000. This line was a trough in late October.

1.2915 has held in support since mid-October. It is the final support level for now.

I am neutral on USD/CAD

Canadian economic data has been mixed. Employment numbers have been strong, but a decline in GDP points to weak economic activity. Risk appetite remains strong, as President Trump waived a March 1 deadline, when further tariffs against China were supposed to go into effect. The markets remain optimistic that the U.S. and China will reach a trade deal, and if further progress is made, the Canadian dollar could get a strong boost.

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