Yet again, a recovery of the Canadian dollar did not last too long. The loonie was already weakening when an official report from the government sent it down again.
Investment in Canada drops to the lowest pace since the peak of the financial crisis in 2009. The forecast for both the public and private sectors for 2014 stands at 1.4%.
After USD/CAD already dropped, it found good support at 1.1050. From there, the pair began moving back up, but remained shy of 1.11. This release, which is not a very important one, found a very sensitive market.
USD/CAD reached a high of 1.1106, which is only 5 pips below 1.1111 or CAD/USD at 0.90. Good data from Canada provides only little help to the C$, while weak figures send it tumbling down. We have seen the same reaction with the release of Wholesale Sales last week.
The ultimate resistance line is the multi-year high of 1.1224, with 1.1140 serving as weak resistance beforehand. Looking down, USD/CAD has minor support at 1.1075 and stronger support at 1.1050.
For more technical analysis and events, see the USDCAD forecast.
