Fundamental Analysis of USD/CAD for November 29, 2017

USD/CAD has been quite corrective recently even though USD has been quite weak due to recent dovish economic reports and events. Recently CAD has been struggling with the gains having lower oil prices along with worse economic reports published. Today on the USD side, Prelim GDP report is going to be published which is expected to show an increase to 3.3% from the previous value of 3.0%, Prelim GDP Price Index is expected to be unchanged at 2.2%, Pending Home Sales report is expected to increase to 1.1% from the previous value of 0.0%, Crude Oil Inventories is expected to show greater deficit at -2.5M from the previous figure of -1.9M and FOMC Member Dudley and Yellen is going to testify today about the upcoming interest rates decision and inflation challenge being faced by the economy which is expected to be quite neutral in nature. On the CAD side, recently BOC Governor Poloz spoke about the challenges being faced by the economy including household debt increase, low ratio mortgage and long-term growth with another Rate hike in coming few months which is expected to help the currency gain stronger over USD. Moreover, CAD Current account report is going to be published tomorrow which previously was negative at -16.3B and High impact economic reports to be published on Friday which includes Employment Change, GDP and Unemployment Rate. There are a lot of high impact economy reports and events to be published in both currencies of this pair which is expected to inject a good amount of volatility in the market this week. As of the current scenario, CAD is expected to gain good momentum by the end of the week which is expected to help the currency to gain against USD in the coming days.

Now let us look at the technical view, the price is currently residing below the dynamic level of 200 EMA whereas the price had bearish regular divergence recently which is expected to push the price much lower in the coming days towards 1.2450 support area. The bearish impulsive is expected to be in effect as the price breaks below 1.2750 area with a daily close. On the other hand, if the price breaks above 1.3010 resistance level with a daily close the bias is expected to change to bullish and proceed higher with the target towards 1.3220 resistance area. As the price remains below the 1.3010 and the dynamic level of 200 EMA the bearish bias is expected to continue further.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Fundamental Analysis of USD/CAD for November 29, 2017