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.

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