USD/CAD Daily Forecast – Key Focus over Escalating US-Sino Trade Tensions

As per the monthly chart, the bulls might overtake the bears in the long run. On the daily chart, the Loonie pair was making upside moves, aiming the overhead Red Ichimoku Clouds.
Nikhil Khandelwal
Flags of USA and China with Franklin and Mao faces.

During the early hours, the Loonie pair had already shifted gears, shooting up from 1.3192 bottom mark to 1.3243 level. Laterwards, the pair appeared to slow down, maintaining a consolidation near 1.3226 level.

Meantime, the Crude prices had appeared to drop since last Friday as the US imposed an additional tariff duty over the $300 billion Chinese goods. Anyhow, now Trump’s tariffs have covered nearly all the imported Chinese products. And, the commodity prices continued to tumble as China had recently initiated some retaliation over the US counterpart. Beijing has allowed the Yuan to slip to almost a decade low against the dollar. Along with that, China has asked the state-owned companies to suspend the imports of US agricultural products.

OIL 1 Day 05 August 2019

On the technical side, the Crude Oil WTI Futures was forming a symmetrical triangle since April 23. However, today, the Crude Futures was struggling to breach and move above the significant SMAs in order to justify the symmetrical triangle.

Significant Economic Events

The most crucial US ISM July Non-Manufacturing PMI data release would happen at around 14:00 GMT. This time, the street analysts hope the Non-Manufacturing PMI to grow 0.73% over the previous 55.1 points. Anyhow, the market holds an in-line estimation over the July Markit Services and Composite PMI data releases.

Notably, the Treasury Bill Yield figures would come out following the PMI data. Last time, the 3-month yield had reported 2.07% while the 6-month yield had stalled near 2.035%.

Today, the Canadian economic calendar stays light-weighed amid lack of CAD-specific and Oil catalyst events like API/EIA Crude data reports.

Technical Analysis

1-Month Chart

Bulls might overtake the bears in the long run. On the monthly chart, a stable 6-year old slanting ascending support line ensured to limit the downside losses.

USDCAD 1 Month 05 August 2019

Notably, the 50-day short term SMA had already crossed and shifted above the other long term SMAs. Such a movement marks for a “Golden Cross”, encouraging the bulls. However, while moving to the north-side, the pair might find uneasiness near 1.3503, 1.3697, and 1.403 resistances.

1-Week Chart

The USD/CAD pair was drifting between the 2:1 and 3:1 Gann lines, sustaining positive price actions. Meanwhile, the Relative Strength Index (RSI) was heading north, indicating 51.2 neutral levels.

USDCAD 1 Week 05 August 2019

Any upward movement, allowing the pair to march above the 1.3500 psychological mark would shift the next target towards 1.3672 level.

1-Day Chart

On the daily chart, the Loonie pair was making upside moves, aiming the overhead Red Ichimoku Clouds.

USDCAD 1 Day 05 August 2019

Also, the Parabolic SAR was approaching the trading pair from the bottom, signaling a trend reversal. Even the USD/CAD pair was trading well above the base line and the conversion line, strengthening the bulls.


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
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.
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.