The Bank of Canada’s Business Outlook Survey for Q3 2019 was released a short while ago. The report indicated that business sentiment in the country had improved, although there were greater differences across regions than ever before.
According to the report:
The Business Outlook Survey Indicator experienced an uptick , but nowhere near the 2017 and 2018 highs.
The report is widely used to predict economic conditions of the country because the business activities of its survey targets form the crux of Canada’s GDP.
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The report was regarded as generally positive for the Canadian Dollar. As such, the USDCAD has given back the gains it made from the retail sales report, and is now trading at 1.3085. This is in keeping with the view that any trades based on the retail sales numbers needed to be short and closed due to possibility of distortion from the Bank of Canada Business Outlook Survey.
Near-term support continues to remain at 1.3065 (today’s S1 pivot support). A break below this area by the daily candle opens a pathway to 1.3011, with 1.3047 (S2 pivot) serving as the only support pitstop on the way down.
The near-term resistance lies around 1.3150. A break above this area targets 1.3225 (38.2% Fibonacci retracement) and 1.3290 (50% Fibonacci retracement level), in sequential order if positive momentum is strong.