HomeContributorsTechnical AnalysisLoonie Rallies after Upbeat Canadian Data

Loonie Rallies after Upbeat Canadian Data

USDCAD fell to one-week low at 1.2719 after US/Canada data. US GDP fell below expectation in Q3 (3.2% vs 3.3% f/c/prev) while US jobless claims rose unexpectedly to 245K, beating forecast for 231K and previous week’s 225K. Weaker than expected US data depressed the greenback while loonie was boosted by upbeat Canadian figures. ADP report showed 59.2K new jobs created in November compared to -5.7k figure previous month. Inflation in Canada rose by 0.3% in Nov vs 0.1% in Oct and 0.2% f/c. Canada’s retail sales have also heavily beaten forecast with 1.5% rise in Nov vs 0.3% f/c and 0.2% in Oct. Today’s extension of bear-leg from 1.9200 (19 Dec high) cracked important support at 2.2740 (Fibo 38.2% of 1.2450/1.2920 upleg and pressured another strong point at 1.2712 (top of thick daily cloud). Fresh weakness is forming a triple-top at 1.2900 zone (after the most recent upside attempt was capped by falling 200SMA) which could signal stronger bearish acceleration. South-heading daily RSI, which moved from neutrality zone and daily MACD bearish divergence, support the notion. However, close below cloud top is needed for stronger bearish signal as rising and thickening daily cloud continues to underpin the action since it twisted higher in mid-November. Repeated rejection at cloud top (downside attempts were already rejected here on 14/15 Dec) would signal extended consolidation between cloud top and short-term range top at 1.2920.

Res: 1.2806; 1.2838; 1.2880; 1.2920
Sup: 1.2712; 1.2685; 1.2665; 1.2630

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
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