USD/CAD Daily Forecast – 1-Day Chart Forming a Falling Wedge Bullish Pattern

At the top of today’s watchlist, traders look for the US Jobless Claim reports. A triumphant march above the 50-day and 100-day SMA conflux would activate the 200-day SMA stalled near 1.3200 psychological mark.
Nikhil Khandelwal
Colorful Canadian Currency

After marking the day’s opening near 1.3056 level, the Loonie pair had showcased a slight upliftment. However, the overhead moving 100-day SMA ensured to limit this immediate price action in the USD/CAD. From there, the pair appeared to take a downturn which took a stop near 1.3042 level. Anyhow, the pair kept the bulls entertained, maintaining a see-sawed performance in the Asian session.

Gradually, the Oil prices continued to slip as the Middle East tensions seemed to ease. Additionally, the US Oil Production also have restarted operations in the Gulf of Mexico. The Crude Oil Futures was trading near $56.70 bbl in the early hours, 7.4% below the six week high.

OIL 60 Min 18 July 2019

The “easing of tensions between the US and Iran, mixed Chinese growth data and storm-hit operations getting back online are all pressuring oil prices downward,” said Alfonso Esparza, Senior Market Analyst at OANDA.

US Dollar Index 240 Min 18 July 2019

On the Greenback front, the 1-month old symmetrical triangle might play its role at any point in time, dragging down the Index, thereby USD/CAD pair. The USD Index might test the pivotal 96.97 level/200-day SMA, on moving further downward.

Significant Economic Events

At the top of today’s watchlist, traders look for the US Jobless Claim reports. The market stays slightly bullish over the Continuing Jobless Claims computed since July 5, expecting a 23K decline this time. Anyhow, the stance remains bearish over the Initial Jobless Claims calculated since July 12, hoping a 5K rise. Apart from the Unemployment data, the July Philadelphia Fed Manufacturing Survey is something quite influential. The Street estimates this Survey data to report 5.0 points over the previous 0.3 points.

There are no oil-catalyst events today. However, the June Canadian ADP Employment Change might put efforts to tweak pair’s daily movements. This ADP report had recorded -16K last time.

Technical Analysis

1-Day Chart

USDCAD 1 Day 18 July 2019

The Loonie pair was forming a falling wedge bullish trading pattern. Hence, the traders can wait for a breakout at the end of this pattern in the near-term. Notably, the 50-day short-term SMA was heading south, targeting the USD/CAD pair. So, at any point in time, things might reverse its course of action, taking the pair to the buyer’s territory.

4-Hour Chart

USDCAD 240 Min 18 July 2019

On a comparatively magnified view, the pair seem to have already broken a 1-month old major counter trendline. Anyhow, the intensity involved in the breaching fails to appeal for a valid breakout. However, the above-the-head resistance conflux made up of the 50-day, and 100-day SMA continues to remain firm, confining the upside. A triumphant march above this aforementioned resistance conflux would activate the 200-day SMA stalled near 1.3200 psychological mark.

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