The Canadian dollar is trading a touch lower against the US dollar. However, the USDCAD pair is heading towards an important support area in the medium term. There is also a bullish hidden divergence forming on the weekly chart. All these supports for bullish view in the pair after it completes the recent correction.
There is a monster trend line waiting for the pair to provide support in the short to medium term. There are also several support levels on the way down for the pair. So, if the pair falls closer to the highlighted trend line on the weekly chart and makes a stop, then we can jump into a buy trade. Remember, the highlighted trend line holds a lot of importance for the pair moving ahead.
Initial target should be around the 1.0820 level, and final target could be around the 1.0880 level. Stop should be placed below the mentioned bullish trend line.
Major events scheduled in the upcoming week
This past week was a mostly a US dollar negative week. There were some key risk events scheduled in the UK, which mostly came in line with the expectations. This resulted in a sharp move higher in the GBPUSD pair. The GBPUSD pair traded above the 1.70 level this past week. The US dollar was also seen losing ground against the Euro as well. The EURUSD traded back above the 1.3600 level, but closed below the 1.3600 going into the weekend. It would be interesting to see how the market shapes up during the upcoming week.
Let us look at all major events lined up in the upcoming week.
Sunday – Chinese HSBC manufacturing PMI.
Monday – French manufacturing PMI, French services PMI, German manufacturing PMI, German services PMI, Euro zone manufacturing PMI, Euro zone services PMI and US existing home sales data.
Tuesday – German IFO business climate index, US new home sales data and CB consumer confidence data.
Wednesday –Gfk consumer climate index, US core durable goods orders data, US GDP data and US services PMI.
Thursday – BOE Governor Mark Carney’s speech, US initial jobless claims data, US personal spending data and Japan’s unemployment data.
Friday –French consumer spending, French GDP, UK GDP, German CPI and Michigan consumer sentiment.
This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: GBPUSD, EURGBP, NZDUSD, AUDUSD, EURNZD, USDCAD, EURCAD, EURJPY, GOLD, SILVER and OIL.
Get it HERE: Vladimir’s Markets Forecast
Happy trading friends!