05.05.201406:10 Forex Analysis & Reviews: Weekly forecast of USD/CAD for May 05-09, 2014

Long-term review

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USD/CAD

Economic events-

Monday-

· ISM non manufacturing PMI- US

Tuesday-

· Trade balance-Canada

· Trade balance- US

Wednesday-

· Building permits

· Fed chairwoman testifies- US

Thursday-

· German industrial production

· Minimum bid rate

· ECB press conference

· Unemployment claims- US

Friday-

· Jolts job opening- US

· Employment change and unemployment data- Canada

Weekly forecast-

The pair has been in a downtrend. The downtrend will resume once the pair breaks the 1.1053 levels. Until the pair trades below the 1.1053 level, 1.065 is an open target. The RSI is in the weekly chart indicating sell on the rally. For the last 2 weeks, the pair has been framing a lower lows and lower highs pattern in the weekly chart. This week's key level is at 1.1023 levels. Until trades below this, weakness persists. On the upside, 1.1014 is the initial resistance level (38.2 fib level), above this, 1.1023 and 1.1047 are the major resistance levels. On the down side, the level of 1.0920 is the key support level, if a break below this, bulls may be worried.

Intraday-

In Asia's trading session the pair is trading at 1.0971 levels. The RSI in the daily and H4 chart indicates a buy on dips strategy for this week. We expect it will take support again and will move higher. On the up side, the pair has a strong resistance zone at 1.0990, 1.1 and 1.1035 levels. On the down side, 1.0960, 1.0942, 1.0920 and 1.09 levels are the support levels.

Buy on dips is recommended for this week.

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