USD/CAD Daily Forecast – Loonie Clinches Near 1.3440 Levels Amid Volatile Oil

The slump rally that initiated on May 23 got slightly got supported near 1.3430 levels today. Before that, Loonie seemed to consolidate in the early hours near 1.3440 levels. At around 10:45 GMT, the USD/CAD pair had touched the day’s then high at 1.3452 levels.

Today is Memorial Day in the US, and hence, there are no USD-specific events for the day. Also, the calendar weighs furthermore lighter amid lack of CAD specific events. Accordingly, the chances of a movement to be induced from the event front remain low.

However, the USD/CAD pair continues to stay sensitive to fluctuating Oil prices and global cues.

Crude WTI Futures was trading near its lowest levels in the Asian session. With rising trade tensions between the Super Powers, the crude had dropped to $57.50 bbl levels on May 23. Another crucial factor that pushed down the commodity prices was the weak EIA reports. This Crude report Publishing Body pointed out that the Crude Stockpiles was noted high for April. Such a poor record hinted of dampening of demand for the commodity. Along with all these rationales, regular OPEC-led Supply Cuts kept the upward pressure intact on the pair. The Crude prices also depend on the Chinese Automobile Sales figure, which revealed minor change since 2018.

Meanwhile, the USD Index takes a flight after being silent in the initial trading hours. Any fresh pessimistic update from the US-China talks front would keep the Index restrained from gaining strength. After blacklisting Huawei, the US President Trump aims at Chinese Surveillance firm, Hikvision. As the situation is getting worsened with less focus given to resolve the matter, investors go unnerved. The Greenback was hovering near 97.72 levels, 0.17% up for the day at around 11:50 GMT.

Technical analysis

30-Minutes Chart

The pair see-sawed in the Asian trading session. At around 10:00 GMT, the Loonie appeared climbing upwards. If it moves further up, then active resistance line awaits near 1.3466 and 1.3502 levels. Whereas, if the pair suffers any pullback, then it may find a support point near 1.3357 levels. The pair appeared touching the upper boundaries of the Bollinger Bands (BB), indicating a bull call.

3-Hours Chart

The pair was hovering over the significant 50-days, 100-days, and 200-days Simple Moving Average (SMA) and remained concentrated at one point. This intersection resulted in a neutral stance on the pair’s movements. The 50-days SMA stood below the other SMAs alluding a near term bullish stance.  Furthermore, the pair crossed the Central Line of the Keltner Channel (KC) moving upwards, showing uptrend signals. The Relative Strength Index (RSI) pointed near 52 levels signaling moderate trader interest.