USD/CAD Daily Forecast – Pair Testing Strong 1.3296 Resistance Level

Crude slipped last night over weaker oil demand outlook and increased US Crude Stockpiles. Ahead of the day, the market eye the US May Inflation data, which remains highly crucial.
Nikhil Khandelwal
Canadian Money
Canadian Money

Last day’s upliftment at around 12:30 GMT had allowed the pair to touch 1.3310 top marks. From there, the pair made a slight correction in the previous night itself reaching near 1.3270 levels. During the Asian trading hours, the USD/CAD pair was drifting in the range of 1.3280/90 levels.

Crude is the most significant export item for Canada. Any rise/fall in the commodity price impacts the Loonie pair inversely.

OIL 60 Min 12 June 2019

Oil prices slipped 1% overnight from $54.00 bbl to $53.00 bbl. The fall in the commodity prices continued into today’s session. The Crude Oil WTI Futures was hovering near $52.36 bbl today morning. The plunge came in amid weaker oil demand outlook and increased US Crude Stockpiles. The American Petroleum Institute (API) reported the Weekly Crude stock data computed since June 7. The data revealed 4.850 million over the previous figures of 3.545 million. OPEC members and Russia continue to set supply cuts by limiting output to 1.2 million bpd. The members have planned to meet up on June 25, followed by another meeting with Russia on June 26. However, sources disclosed that Russia might postpone the meeting to July 3 to 4.

Ahead of the day, the market eye the US May Inflation data, which remains highly crucial. The trade tensions between the Superpowers have widened over time, damaging significant economies. Trump and Xi would meet later this month in the G20 meeting. The primary meeting minutes would include resolving the US-China trade dispute. On the other hand, the Fed keeps a close watch over the progress on the trade deal. Fed Chair Powell had mentioned last week that the Bank would take appropriate steps over an economic slowdown. The policymakers hinted of interest rate cuts in such a deteriorating situation. Hence, today’s inflation data is something that needs extra attention. The Street analysts stay in-line with the previous 2.1% over the YoY May CPI figures that exclude Food & Energy. Anyhow, the market has kept a robust bullish stance on the MoM CPI figures to report 0.1% higher this time over previous 0.1%.

Technical Analysis

USDCAD 60 Min 12 June 2019

On an hourly chart, the USD/CAD pair demonstrated breaking the downtrend. There was some excellent momentum observed in the pair’s movements as buyers lifted RSI to 60 levels. Today, after making a break-through from the downtrend channel, the pair was testing the healthy 1.3294 levels. Any action above that point would confirm a trend reversal in the upcoming sessions. The pair might feel some resistance force while moving near 1.3365 and 1.3431 levels.

USDCAD 1 Day 12 June 2019

On the daily chart, things appeared to stay positive. The uptrend seemed to remain intact within the trend lines. The technicals were showcasing only a slightly bullish stance over the USD/CAD pair. However, the trend continues bearish in the near-term as the 50-days, and 100-days SMA was moving well above the pair.

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.