The Key Event Is the Data on GDP of Canada

From the beginning of February 2018, there has been a pronounced upward trend on the USD/CAD currency pair. During this period, the Canadian dollar has weakened against the US dollar by more than 4%. The trading instrument has reached a key resistance level of 1.2900. In the near future, a technical correction is not ruled out.

USD/CAD
Source: finviz.com

Today, Statistics Canada will publish a report on GDP at 15:30 (GMT+2:00). The gross domestic product is the key indicator of the country's economic health, which has a strong impact on the exchange rate of the national currency.

The latest economic reports from Canada were rather weak. In January, the business activity index from Ivey fell by 8.6% to 55.2. In December, retail sales in the country fell by 0.8%. Experts expect that Canada's economic growth will slow to 0.1% from 0.4% (m/m).

GDP of Canada
Source: tradingeconomics.com

It should be noted that the GDP report will have the decisive importance at the meeting of the Bank of Canada. The two-day meeting of the Central Bank will be held next week, and it is the GDP statistics that can influence the views of the regulator's representatives on the future fate of the monetary policy. We recommend paying attention to the difference between the actual and the forecasted values.

Let's have a look at the techical pattern on the USD/CAD currency pair
  • Support levels: 1.28150, 1.27600, 1.27100
  • Resistance levels: 1.28650, 1.29000
USD/CAD Pattern

At the moment, the USD/CAD quotations are consolidating. Investors expect the publication of data on GDP of Canada. The key support and resistance levels are 1.28150 and 1.28650, respectively. The technical pattern indicates a possible correction of the USD/CAD currency pair. A sufficiently strong reversal formation of the price and MACD histogram divergence has been formed. If the statistics from Canada is optimistic, the USD/CAD quotations may reach the level of 1.27600-1.27000.

An alternative may be the further growth of the USD/CAD currency pair to the round level of 1.29000.

by JustForex, 2018.03.02

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Open Account

Get Free Analytics

* required fields
Last Articles
All Articles
Full Guide to Forex Trading in South Africa
Forex trading is a popular form of short-time investment and a source of additional or main income for many people all over the world. Forex trading is available in South Africa, but many potential traders just do not know how to make the first steps in this field. This full beginner’s guide explains the base of Forex and its key terms.
Read more
How to Learn Forex Trading for Beginners in 2022
We want to present a guide for beginner Forex traders that will give the main ideas on how to start Forex trading in the most effective way and how to earn on purchasing and selling currencies. Professional traders have designed the Forex trader tutorial whose extensive experience helped optimize its structure and content. It offers all the necessary information to start your trading journey in 2022.
Read more
Social Trading vs. Copy Trading
The Forex market is full of complex terms and definitions that look like a total mess for a novice. There is no surprise that some traders do not see the difference between copy trading and social trading. This article explains the difference, discusses pros and contras, and the best platforms for these types of trading.
Read more