USD/CAD Daily Forecast – +3.8% Crude Price Upsurge Took Away USD/CAD Pair GainsToday morning Iranian media reported “two explosions” over tankers en route to Singapore and Taiwan. Traders anticipate the US Unemployment figures and May Trade data.
After knocking off the weekly top 1.3345 levels last night, the Loonie pair appeared to make a slight U-turn. Somehow, the USD/CAD pair attempted a rebound from the 1.3324 supportive levels in the early Thursday hours. However, the pair couldn’t reach 1.3345 levels as the strong 1.3340 resistance obstructed its further movements. Laterwards, the USD/CAD pair appeared heading south aiming next 1.3311 support levels last touched on April 12.
The primary reason for the immediate weakness was the upshot in the Crude prices today morning.
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The Oil prices soared 3.8%, reaching $53.08 bbl after an oil tanker incident in the Gulf of Oman. Today morning, Iranian media had reported “two explosions” over tankers en route to Singapore and Taiwan. Reports suspect the tankers to come from the UAE and Saudi Arabia. However, the attacks claim to take place when the Oilers were near the Iranian coast. UK Maritime Trade Operations alerted “extreme caution” as the US-Iran tensions might elevate drastically.
In the meanwhile, the Greenback remained slightly down amid worries over an economic slowdown. Last day’s CPI reports that slightly missed estimates strengthened bets around a probable near-by rate cut. Also, the US-China trade dispute lacked fresh positive headlines to support the global currency. However, both the parties would take up efforts at the G20 meeting to resolve the ongoing trade issues. At around 06:35 GMT, the US Dollar Index was taking rounds near 96.87 levels, ten pips down.
Ahead of the day, traders sit tight anticipating the US Unemployment data and May Trade figures. Street analysts stay bullish over the Jobless statistics this time. From the CAD front, the Housing data would act as a milder catalyst for the pair’s movements.
After a smooth uptrend yesterday, the USD/CAD appeared to bounce back from the upper boundary of Bollinger Bands. During the Asian trading session, the pair was testing the center line to move south into the lower gap of the Bands. The Overhead hovering 200-days SMA confirms the upcoming downtrend in the pair. Hence, traders can expect a sharp pullback in the USD/CAD pair’s actions.
Anyhow, the short term trend might uplift the pair as the 50-days, and 100-days SMA remains under the pair’s shadow. Strong resistance might act as an obstacle near 1.3346 if the pair makes a near term upward move. On the flipside, 1.3277 levels and 1.3237 levels await patiently to provide strong support on a downfall. Also, the RSI was pointing near 52.11 levels showing milder buyer interest.