Preparing for the publication of significant statistics in Canada
In this review, we suggest considering the personal composite instrument (PCI) & CAD_Index. It reflects the price dynamics of the Canadian dollar against other world currencies. Will the CAD_Index rise?
The share of hydrocarbons in Canadian exports reaches 25%, therefore, the Canadian dollar may strengthen along with an increase in global oil prices. Inflation data for November will be released on December 18. It is expected to rise to 2.2% year over year from 1.9% in October. This reduces the likelihood of a rate cut by the Bank of Canada at the next meeting on January 22, 2020, and can positively affect the Canadian dollar. The interest rate of the Bank of Canada is 1.75%, and the target range of inflation is 2% plus/minus 1%. Let us note that wholesale and retail sales for October will be published this week in Canada.
On the daily timeframe, the CAD_Index: D1 is correcting up and has exceeded the resistance line of the short-term downtrend. A number of technical analysis indicators formed buy signals. The further price growth is possible in case of positive news in Canada and an increase in oil prices.
Summary of technical analysis
In this review, we suggest considering the personal composite instrument (PCI) & CAD_Index. It reflects the price dynamics of the Canadian dollar against other world currencies. Will the CAD_Index rise?
The share of hydrocarbons in Canadian exports reaches 25%, therefore, the Canadian dollar may strengthen along with an increase in global oil prices. Inflation data for November will be released on December 18. It is expected to rise to 2.2% year over year from 1.9% in October. This reduces the likelihood of a rate cut by the Bank of Canada at the next meeting on January 22, 2020, and can positively affect the Canadian dollar. The interest rate of the Bank of Canada is 1.75%, and the target range of inflation is 2% plus/minus 1%. Let us note that wholesale and retail sales for October will be published this week in Canada.
On the daily timeframe, the CAD_Index: D1 is correcting up and has exceeded the resistance line of the short-term downtrend. A number of technical analysis indicators formed buy signals. The further price growth is possible in case of positive news in Canada and an increase in oil prices.
- The Parabolic indicator gives a bullish signal.
- The Bollinger bands have narrowed, which indicates low volatility. Both Bollinger bands are titled upward.
- The RSI indicator is above 50. It has formed a positive divergence.
- The MACD indicator gives a bullish signal.
Summary of technical analysis
Position | Buy |
Buy stop | Above 0.807 |
Stop loss | Below 0.796 |