USDCAD Analysis – 10th July Forecast
- The USDCAD continued its upside move which began late last week and made its third consecutive daily high.
- The CAD dropped along with other commodity correlated currencies as policy makers once again got together in Brussels to work on a way forward for the euro-crisis. Concerns around Chinese inflation data and a potential slowdown in this area have also added to the downside pressure on commodities.
- The Standard & Poor’s 500 (S&P500) has dropped almost half a percent.
- Spanish and Italian bonds dropped on elevated concerns that policy makers will not be able to sufficiently control a euro contagion scenario.
- Price found resistance around the 20 period daily SMA which is closely aligned with a triple candle low cluster as can be seen on the chart below.
- US data this week includes Trade Balance, Unemployment Claims, PPI and Prelim UoM Consumer Sentiment. In terms of Canada specific data there is Housing Starts data featuring on the 10th July with Trade Balance on the 11th.
US Dollar/Canadian Dollar – Daily Chart