USD/CAD Daily Price Forecast – Loonie Bears May Take Charge Amid Skyrocketing Crude Prices

During the early hours, the USD/CAD rallied benefitting on the back of greenback elevation. The pair had broken the 200-days SMA and traded above it, inviting more loonie bulls. Investors eye the upcoming Canadian Feb Wholesales figures and the US housing data reports.
Nikhil Khandelwal
Pile of colorful Canadian money

Today, the Commodity-linked Canadian dollar underwent elevation on rising crude prices. Notably, the Crude Oil West Texas Intermediate (WTI) had showcased a 2 percent Gap-Up opening last day. The prices had shot up on reports suggesting the complete rejection of the US sanction waivers on the Iranian oil.

During today’s Asian trading session, Crude Oil remained consistent in that upper range of $65.50/55 per barrel.

Despite that, the robust USD/CAD upsurged from 1.3351 levels reaching near 1.3372 levels on the opening bell. The pair got strengthened on the backdrop of the rising greenback. The US Dollar seemed to elevate against the fall of the rival currencies. The plunge in the EUR/USD drove the greenback upwards, amid broadening of US-German Government Bond yields. Also earlier the day, the Kiwi was down on sparse March Credit Card Spending reports.

The loonie may continue to stay near the top levels on the backing of robust US Dollar.

USD/CAD Impacting Events

12:30 GMT

The Statistic Canada will publish the MoM Wholesale Sales numbers. The report would tap the retail sector performance for February. Though the event pays low volatility on the currency pair, it is a single event taking place in support of CAD. Street experts are expecting 0.2 percent fewer wholesales for this day.

13:00 GMT

This time, the MoM Housing Price Index is anticipated to come out bearish on Canadian dollars. The US Federal Housing Finance Agency is about to broadcast this index. The analyst expects the numbers to come around 0.3 percent to the previous 0.6 percent.

14:00 GMT

The US Census Bureau will release the March MoM New Home Sales. The index would elucidate about the housing market performance. The street experts, however, stay quite bearish on the upcoming New Home Sales. They anticipate the figures to come around 170 K lower than the previous 0.667 million.

20:30 GMT

The API will release the weekly crude oil inventories computed since April 19. The previous figures had recorded a negative 3.096 million stocks.

In case, if these reports fail to report as estimated then the USD/CAD pair may suffer pullbacks.

Technical Analysis

USDCAD 60 Min 23 April 2019

The loonie pair was drifting near the upper region of the Bollinger Bands (BB) after crossing the EMA. The sustained motion in this vicinity develops rationales for an uptrend. The USD/CAD went above breaching the significant 200-days SMA, confirming bull calls. The Relative Strength Index (RSI) revealed some strong momentum positioned near 60 levels. Notably, investor sentiments also seem to remain positive over the pair’s future movements.

Over to the upper side, there remains an active resistance line of 1.3392 levels. And moving to the downside, the robust 1.3342 support line becomes the target.

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.