USD/CAD WEEKLY FORECAST::MARKET PRICE ON BULLISH BIAS

FUNDAMENTAL BEAM

For the second straight week the Canadian dollar showed little change, closing slightly above the 1.10 line. This week has just three releases, highlighted by Core Retail Sales.  Here is an outlook on the major events and an updated technical analysis for USD/CAD.
Canadian Manufacturing Sales posted strong gains for the second straight month, and the Bank of Canada held its benchmark interest rate, as expected. In the US, Unemployment Claims beat the estimate, while dovish comments by Fed chair Janet Yellen weighed on the greenback.
Updates:

• Apr 21, 15:50: Markets in holiday mood: Implied currency volatility levels across the major pairs have dropped to lows not seen since 2007, and equity markets are...

1. Wholesale Sales: Tuesday, 12:30. Wholesale Sales bounced back in February, posting a gain of 0.8%. However, this fell short of the estimate of 1.2%. The markets are expecting a similar reading in the upcoming release, with the estimate standing at 0.7%.
2. Core Retail Sales: Wednesday, 12:30. This is the key event of the week. Core Retail Sales excludes automobile sales, which makes it a more reliable gauge of consumer spending than Retail Sales. The indicator posted a gain of 1.0%, marking a six-month high. The markets are expecting a smaller gain of 0.6% in the March reading.
3. Retail Sales: Wednesday, 12:30. Retail Sales is considered the primary gauge of consumer spending. The indicator looked sharp in March, posting a gain of 1.3%, well above the estimate of 0.8%. This was the highest gain in close to a year. The April estimate is significantly weaker, with an estimate of 0.5%.

TECHNICAL BEAM



After posting consecutive profiting points on the upside for the second week running: the USDCAD still looks strongly bullish bias and is expected to continue further up.
Elliot wave and fibonacci analysis reveals the pair is further moving toward completing a wave iii leg, recorded at exactly 1.1054.

NOTE: Price predictions produced by FibonacciPrice&PatternTrader may be affected by unforeseen events like hurricane, earth quake, flood and other natural disasters consequently changing price patterns already predicted. Hence we advice strict adherence to money management techniques.

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