USD/CAD Daily Forecast – Pair Testing Strong 1.3296 Resistance LevelCrude 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.
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 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%.
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.
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.