USD/CAD Daily Price Forecast – Loonie To Move Range Bound Near Mid-1.33 Handle

Prevalent USD selling bias keeps exerting downward pressure on comments from Fed Chair Powell, while increased risk appetite & crude oil price also support Loonie’s gains
Colin First
USDCAD Monday
USDCAD Monday

The USD/CAD pair opened dovish for the week with gap down move and has since maintained a range bound price action near intra-day lows. Canadian Loonie gained upper hand today on increased risk appetite and broad based US Dollar’s weakness. Wall street equities got a boost last Friday on better than expected US NFP data and comments from US Fed Chair Jerome Powell where he stated that Federal reserve could pause rate hike plans for 2019 depending on macro data outcome which boosted investors risk appetite. Asian market hours saw major indices trade positive on lingering cues from China’s Central bank policy adjustment which also provided some fundamental support to increased risk appetite in market which helped Canadian Loonie gain some ground against US Greenback.

Recovery in oil prices underpins Loonie

Canadian Loonie also gained support from rebound in crude oil price in both futures and equity market. Loonie being a commodity linked currency (Crude Oil) is greatly affected by any changes to price action of said commodity. Crude Oil price is recovering in broad market supported by OPEC’s planned production cuts and investor’s hopes for positive progress in Sino-U.S trade talk which begins today. Declining crude oil price is beginning to affect US energy markets as well owing to increased production and inventory stockpile in US which has caused investors to speculate if US would change its stance on output and inventory management approach. China being the biggest imported of crude oil could set off a bullish rally if the two-day talks which began today has positive outcome.

As of writing this article, the USD/CAD pair is trading at 1.3349 down by 0.16% on the day and has displayed consolidative action across both Asian and European market hours having near mid 1.33 region having hit 3-week lows earlier today. On release front, both US & Canada have first tier macro data with IVEY PMI & ISM Manufacturing PMI scheduled to release in american market hours which will keep the pair highly volatile for rest of today’s market hours. When looking from technical perspective, the pair is expected to retain bearish price action in immediate and near future with further decline testing 1.3300 level to downside while a recovery faces resistance around 1.3400 handle respectively.

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
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US