The Canadian dollar showed strength over the greenback during last week’s trading session. Reports showed that the U.S prelim GDP slowed down to -1.0% showing signs of weak economy in the U.S. A further report also shows that pending home sales worsened to 0.4% which added weakness to the green back.
Weekly bias remains on the downside with a price rejection seen twice on the 55EMA on the 4hours time-frame. MACD and RSI oscillators are also showing a sign of bearish continuation. More falls is expected to 1.0700 if a clear break of 1.08132 supports is seen.
In the coming week, the Bureau of Labor department will be publishing the Canadian Employment Statistics which will determine the single currencies fate. Economists are expecting an improving data from the previous month’s figure. Another data to be published next week showing sign of recovery in the Canadian economy is the IVEY PMI, analysts are expecting a better figure as well.
However a valid break of 1.08849 resistance might dampen the current bearish trend in the pair and might bring further rise to 1.09402.