Technical tools: simple moving averages (20 – the medium line between the upper and lower Bollinger bands, 55 – green line and 100 – blue line), relative strength index, Bollinger bands, Fibonacci retracement levels, channel lines and trendlines.
The following daily chart shows the USD/CAD currency pair exchange rate easing between July 5, 2017 till the date of this forecast submission, June 23, 2017.
Daily SMAs are switching positions, without providing a clear direction. The 20-day SMA (1.3369) is below the 55-day SMA (1.3479) and below the 100-day SMA (1.3392). A complete bearish bias will be accomplished once the 55-day SMA crosses below the 100-day SMA.
The RSI is ticking at 36.8 still not exhausted and implying further scope to congestion on the downside.
The exchange rate is currently leaving the lower Bollinger band and might soon put to the test the cluster formed by the 20-day SMA and the 100-day SMA.
The following daily chart shows Fibonacci retracements and a descending trading channel.
BOC officials recently suggested that an interest rate hike is due possible this year. Yesterday’s retail sales offered a much better picture of the sector for the month of April. Retail sales and core retail sales outperformed in April, when analysts were calling for softer figures.
Today’s May CPI report took off the impetus suggested on hawkish BOC’s officials hints. The YoY headline inflation came at 1.3% off a 1.5% forecast, while the underlying inflation came at 0.9% off a 1.…