USD/CAD Daily Price Forecast – The Loonie Bulls Buckle-Up Ahead of the Canadian Housing Data

The Loonie kicked off the day near 1.3471 levels and later slipped 15 pips down. At 04:50 GMT, the pair deviated above the support level near 1.3457 levels. Going forward, the Loonie seems to drift inside the range of 1.3460/70 levels.

During the Asian session, the USD had taken a slight southward move, recording a 13 pips fall. Laterwards, the Index appeared to trade around 97.47 levels. The escalated US-Sino trade tensions continued to drag down the Greenback. As no further improvements get recorded over this topic, the American Dollars buyers remained upset. However, the Loonie may need to face the negative consequence of the USD plunge.

On the other side, the Crude Oil WTI Futures Index upsurged during the day. The Oil prices went up despite the US-China trade deadlock and increasing US crude stocks. Meanwhile, the OPEC led nations remained firm to continue with their supply cuts. During the Asian session, the Monthly Chinese Imports and Export recorded an increase. These positive data helped the oil prices to crop up today. The Loonie tumbled after the Crude prices improved during the day.

USD/CAD Influencing Events

On the events front, the market looks ahead for the Canadian April Housing Starts s.a. (YoY).

The consensus estimates a high reading this time. They expect the numbers to come around 196.4 thousand. This event may have a significant impact on the pair’s directional movement.

Notably, there are no upcoming USD-specific significant economic events today. However, the Governor of Federal Reserve Richmond, Lael Brainard, would express his opinions over the US economic outlook. At, 17:00 GMT, the 10-year Note Auction average yield will get published.

Furthermore, the EIA’s Crude Oil Stock Change report will come out at 14:30 GMT. The Crude stocks have reported near 9.93 million, last time. Hence, any further increase/decrease in the inventories would profoundly impact the USD/CAD pair. As there is an inverse relationship between the crude oil prices and the Loonie, the pair increases over the oil price slump.

Technical Analysis

1-Hour Chart

The Loonie remained above all the significant Simple Moving Averages (SMA) signaling a bull ride. However, the 50-days SMA stood above the other significant SMAs indicating a bullish outlook in the near term. Investors need to take precaution as the RSI stays near the 50 levels and it may get skewed anytime. Meanwhile, an active support line near 1.13458 levels awaits the pair.

4-Hour Chart

The USD/CAD pair hovered in the upper vicinity of the Keltner Channel, alluding a bullish prospect. And, the pair was trading near 1.3462 levels at 05:00 GMT today. The RSI remained above 40, and this hinted a moderate buying among the traders of USD/CAD pair.