USD/CAD Daily Forecast – Bulls Resiliently Hovering Near Multi-Month Top

On the event front, the Canadian July Ivey Purchasing Managers Index s.a. data release might attempt to tweak the pair’s daily movements. On the hourly chart, the USD/CAD pair was resiliently moving upward, staying close to the 1:1 Gann line.
Nikhil Khandelwal

The Loonie pair rang the opening bell on Wednesday near 1.3281 level and displayed a slight bearish price action. Anyhow, the pair took a bounce off from the stable 1.3271 support handle, moving upside. At 03:00 GMT, the USD/CAD pair was making rounds near 1.3315 multiple month top mark with RSI indicating 60.37 levels.

Pressurized Crude Prices

The Crude Oil prices kept falling on Wednesday as intensifying US-Sino trade tensions mounted over the global economy. Therefore, the market fears of a substantial weakening in the overall demand outlook for the commodity.

OIL 1 Day 07 August 2019

Yesterday, the Oil prices had undergone a sharp pullback, breaking down out of a 2-month old symmetrical triangle. Such a breakdown signals for a bearish reversal pattern. Despite that, the Crude Oil WTI Future was 0.32% up since the last closing, trading near $53.57 bbl in the morning session. On moving further downside, the support handles stalled near $51.52 bbl and $50.63 bbl would get activated.

Significant Economic Events

The US economic docket remains quite silent today amid a lack of significant economic events. Anyhow, the Canadian July Ivey Purchasing Managers Index s.a. data release might attempt to tweak the pair’s daily movements. The market expects this Ivey Index to grow 1.15% over the previous 52.4 points.

Later the day, Oil-catalyst EIA Crude Oil Stocks Change computed since August 2 would come out at around 14:30 GMT. This time, the consensus estimate the Crude data to record -3.313 million over the last -8.496 million.

Technical Analysis

1-Day Chart

After maintaining a steady downtrend for the last two months, the USD/CAD pair made a reversal drift on July 19. From there, the pair had sustained some positive price actions, breaking and moving above 1.3148 resistance handle. Somehow, a healthy 1.3293 resistance mark stood at the entrance to the upside, capping pair’s daily gains today.

USDCAD 1 Day 07 August 2019

However, the bulls seem to possess enough strength, considering the below lying Parabolic SAR technical indicator. If the pair makes a triumphant march above this aforementioned resistance mark, then that would enable fresh challenge on next resistances stalled at 1.3300, 1.3428, and 1.3519 levels.

1-Hour Chart

On the hourly chart, the USD/CAD pair was resiliently moving upward, staying close to the 1:1 Gann line. Also, the histograms of the Moving Averages Convergence Divergence (MACD) were pointing to the north, encouraging the bulls.

USDCAD 60 Min 07 August 2019

Nevertheless, if the pair takes an immediate downfall, then the 1.3247 resistance might turn into a firm support line, acting a strong barrier. However, in that case, any drastic drop beyond the 1.3247 mark would signal for further weakness in the pair, activating 1.3183, 1.3119, and 1.3045 support levels.

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