USD/CAD Daily Price Forecast – Low Oil Prices and US PMI Signalling Potential Hike

The USD/CAD firmly remained above the resistance level. Crude Oil WTI prices stood low. The US economic data may fuel in the Loonie pair to rise more. The pair above Ichimoku, refer near-term neutral stance.
Nikhil Khandelwal
Canadian Money

The USD/CAD pair started the day near 1.3466 levels and remained in series. The pair repealed above from the resistance point near 1.3464 levels. The Loonie pair was seen waving within the range of 1.3471 and 13459 levels. The USD/CAD pair better managed to remain upward and kept resisted from any significant breakdown.

A sharp fall in the Crude Oil WTI prices was recorded yesterday following the US surge in the oil inventories. However today the Crude Oil prices opened around 61.70 levels but further dropped down to 48 pips. The Crude prices are currently trading near 61.72 levels during 10:00 GMT. These depreciating rates have impacted the USD/CAD pair to remain above the resistance point.

Many relevant US economic reports lined up to release in the European session. The market anticipated Average Hourly Earnings to appear bullish. And, they expect the ISM-Non Manufacturing PMI, may lean up over the previous numbers. Also, the Labour force data, Markit PMI, and Wholesale Inventories reports may take a bearish call. If these statistics appear bullish than estimated, then the USD/CAD pair may deviate upwards. And it is likely for the pair to hit new highs for the day adhering the above estimates.

USD/CAD Impacting Events Lined Up

There are no CAD specific events during the day. However, the pair may find some movements on the back of upcoming US events.

USD Specific Events for April

12:30 GMT

  • US YoY Average Hourly Earnings (High Volatile) – The consensus estimates the earnings to grow 0.2 percent to the prior 3.2 percent.
  • US Non-farm Payrolls (High Volatile) – This time, the market anticipates the numbers to report 11K lower than the prior 196K. The Non-Farm Payrolls report provides data about the new jobs created in a particular period.

14:00 GMT

  • US ISM Non-manufacturing PMI (High Volatile) – The street analysts anticipates the PMI to increase with point nine percent to the prior 56.1 percent.

17:00 GMT

 

  • US Baker Hughes Oil Rig Count – This figure act as a reliable barometer for the region’s drilling sector and its suppliers. The Publishing body recorded 805 points last time.

Technical Analysis

USDCAD 60 Min 03 May 2019

The Loonie pair was taking rounds above the Ichimoku clouds, two days in a row. This position of the USD/CAD pair signaling for a strong uptrend.  Further, the conversion line had almost coincided with the pair developing near-term neutral stance. However, the pair was quite a pips above the base line confirming upcoming bullish legs. The Relative Strength Index (RSI) stood near 53.4 levels. The RSI trend shows a healthy buying in this USD/CAD pair.

In nutshell, the combination of strong technicals along with expected US economic data will allow the USD/CAD pair to continues its upward trajectory.

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