The Canadian dollar showed some signs of recovery during last weeks trading session after the US dollar released disappointing data from the Retail Sales which weakened the greenback on board. The pair made resistance at 1.13840 and then started making lower highs, a sign of bullish weakness.
However weekly bias still remains on the upside in the long term picture as 21 and 55 Ema’s are still crossed upward but i suggest a clear break of 1.13840 resistance with high volume before going long. In the medium term picture the bias remains on the downside with bullish momentum waning off in the currency pair. Am expecting a decline of price to 1.10785 supports.
This week important fundamental reports would be coming from the Canadian economy, investors would be closely monitoring the Canadian Interest rate, Monetary Policy report and BOC conference which is released quarterly every year.