USD/CAD Daily Forecast – 1.33 Psychological mark Confining Near-term Upside

On the 4H Chart, the Loonie pair appeared to travel well above the Green Ichimoku Clouds, sustaining the near-term positive trend. On the Crude side, Saudi stays underway efforts to boost the commodity’s price with the IPO of Aramco.
Nikhil Khandelwal
Stock Market Data

The Loonie pair started the day near 1.3237 level and remained slightly muted in the early few hours. Laterwards, the pair unleashed its bulls, touching the day’s high near 1.3264 level. Notably, the pair made several attempts to breach above the aforementioned day’s then high benchmark in the Asian session. However, the efforts seemed to go in vain, allowing the RSI to drop to 52 levels.

On the Crude side, Saudi stays underway efforts to boost the commodity’s price with the IPO of Aramco. Nonetheless, escalating US-Sino trade tensions and higher expectation over US Shale Oil output continued to put a lid on the Crude prices.

“The swift reaction from Saudi Arabia will likely stabilize oil prices, but the oil price probably won’t move much above $60 per barrel until there is evidence of progress in U.S.-China trade negotiations,” Stephen Innes, managing partner at VM Markets Pte Ltd, said in a note.

Significant Economic Events

US July Consumer Price Index (CPI) data releases on the cards for USD/CAD pair today. The highly crucial CPI release that excludes Food & Energy data would come out at around 12:30 GMT. Though the market expects the YoY aforementioned CPI data to report in-line with the previous 2.1%, the market stays slightly bearish over the MoM data.

Canadian economic docket would remain silent on Tuesday amid the absence of significant CAD-specific economic events.

Anyhow, the API Weekly Crude Oil Stock computed since August 9 might attempt to tweak the daily oil prices and thereby the USD/CAD daily price actions. This API data had recorded -3.4 million last time.

Technical Analysis

1-Day Chart

The USD/CAD pair had already made a move above a major counter trendline near the start of August, strengthening the bulls. Anyhow, the positive trend might reverse at any point, noting the slowdown of 50-day SMA below the 200-day SMA.

USDCAD 1 Day 13 August 2019

Hence, the 50-day SMA, along with support levels stalled near 1.3113 and 1.3018 levels was restricting the downside. Similarly, SMA confluence consisting of the 100-day and 200-day SMA kept forbidding the pair’s positive drifts. Furthermore, resistances stemmed near 1.3250, 1.3300, and 1.3345 levels added to additional barriers on the north side

4-Hour Chart

On the 4H Chart, the Loonie pair appeared to travel well above the Green Ichimoku Clouds, sustaining the near-term positive trend.

USDCAD 240 Min 13 August 2019

Nevertheless, 1.3300 psychological resistance handle might play out its role on any further positive price actions. Despite that, the pair was making rounds above the north-facing Parabolic SAR technical indicator, pleasing the short-term bulls. Anyhow, though the base line stood below the pair, the conversion line remained above the pair, canceling out the bullish forecasts. Meantime, the Relative Strength Index (RSI) was pointing towards 56 levels, revealing a slightly rising buyer interest.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US