USDCAD on Friday dropped -0.03% to 1.36090. Week ending 2024-05-17 moved lower by -0.5%. What you need to know.

Dear ,

As requested, let’s look at EURUSD and the recent events that happened in the previous trading session.

USDCAD Analysis

Performance
Period	Pct	Chg	Momentum
Friday	-0.03%	-4.3 Pips
Week 2024-05-17	-0.5%	-68 Pips
May	-1.22%	-168 Pips

Upcoming key events for the new week (London Time)

  Mon 06:00 AM Victoria Day
  Tue 01:30 PM Bank of Canada Core Inflation CPI (12-mth)
  Tue 01:30 PM CPI Inflation Rate (12-mth)
  Wed 07:00 PM FOMC Meeting Minutes
  Thu 01:30 PM Initial Unemployment Insurance Claims

What happened over the week

🇺🇸 U.S. Industrial Production (1-mth) in April dropped to 0% compared to previous figure 0.4% in March
🇺🇸 U.S. Philadelphia Fed Manufacturing Survey in May dropped to 4.5 points compared to previous figure 15.5 points in April
🇺🇸 U.S. CPI Inflation Rate (1-mth) in April dropped to 0.3% compared to previous figure 0.4% in March Source: Bureau of Labor Statistics
🇺🇸 U.S. Monthly Retail Trade (1-mth) in April dropped to 0% compared to previous figure 0.6, revised from 0.7% in March Source: Census Bureau
🇺🇸 U.S. CPI Inflation Rate excluding Food and Energy sectors (1-mth) in April dropped to 0.3% compared to previous figure 0.4% in March Source: Bureau of Labor Statistics
🇺🇸 U.S. New York Empire State Manufacturing Index in May dropped to -15.6 points compared to previous figure -14.3 points in April
🇺🇸 U.S. Producer Price Index (12-mth) in April rose to 2.2% compared to previous figure 1.8, revised from 2.1% in March
🇺🇸 U.S. Producer Price Index (1-mth) in April rose to 0.5% compared to previous figure -0.1, revised from 0.2% in March

What can we expect from USDCAD for the new week and what happened on Friday?

USDCAD on Friday dropped -0.03% to 1.36090. Price is below 9-Day EMA while Stochastic is falling. For the week ending 2024-05-17, the pair dropped -0.5% or -68 pips lower.

Looking ahead on Monday, USDCAD looks mixed as the pair is likely to consolidate above week low of 1.35896.

For the new week, our technical outlook looks bearish, immediate support level is at 1.35710 (WS1) with break below could see further selling pressure towards 1.35330 (WS2). For potential buyers, as the current momentum is bearish, we prefer to look at firm break of the week high of 1.36842 as an important indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below week low of 1.35896 would indicate selling pressure.

For the month of May, USDCAD is down by -1.22% or -168 pips lower.

Weekly key levels to watch out: