USD/CAD Daily Price Forecast – The Bears Dominate The LoonieCrude Oil WTI Futures dropped to a five-day low price amid higher US Oil output growth. Upcoming US April NY Manufacturing Index and BoC’s Business Outlook may provide some support to the falling pair.
Amid the plunging greenback, the USD/CAD got pushed to the bottom near 1.3320 levels. The crude price upshot teamed up with the dollar index to elevate the pain in the loonie pair. The USD/CAD extends the previous day’s consolidation phase into today’s session ranging between 1.3319 and 1.3345 levels. The pair opened up on Monday morning near 1.3327 levels and showcased a decent upward drift touching 1.3342 levels.
Crude Oil West Texas Intermediate (WTI) Futures fell flat on face from $63.70 per barrel to $63.28 per barrel, 40 pips down. The prices had touched its five-day low price of $63.23 per barrel. The geopolitical tensions prevailing in Libya, the US sanctions on Iran & Venezuela, the OPEC-led supply cuts remain alive. However, the crude prices went down on US announcement of its higher growth in oil output.
Russia and other OPEC allies have mentioned that they may continue oil supply cuts until attaining their desired price. Now, the scene seems to change a bit after the US oil output growth reports. Russian media suggested that the OPEC members may elevate the oil production to maintain the market shares. The OPEC allies may continue pumping oil until the prices reach even the lower vicinity near $40 per barrel. In conclusion, The crude plunge may have a significant impact on the loonie pair in the middle of the currently weakened greenback.
USD/CAD Movers – Key Economic Events
The US Dollar Index was trading near 96.84 levels underway downtrend. The dollar index, however, anticipates the NY April Empire State Manufacturing Index to come around 2.3 points higher than the previous 3.7 points. Above all, the USD/CAD is expected to experience some precise movements post-event.
Along with the US event, the Bank of Canada will release the Business Outlook Survey at 14:30 GMT. The Business Index is computed after interviewing 100 business executives. Buyers keep a closer watch on this Mid Volatile event.
The USD/CAD remained within the specific range of 1.3319 and 1.3380 levels. The pair had broken the center line of the Bollinger Bands (BB) and shifted towards its lower area. This downward change in direction signifies of an upcoming bearish movement. The pair is heading towards the strong support line of 1.3307 level and seems pretty sure to breach it. On the upper side, there is a strong resistance line at 1.3397 levels. Relative Strength Index (RSI) displayed significant weakness in the pair. In a nutshell, the bears lead the game from the technical perspective for the day.