USD/CAD Daily Price Forecast – The Loonie Pair Remain Stabilized Amid Tightening Crude Prices

After a small correction of around eight pips, the loonie pair displayed a sideways pattern during the early Asian trading session. The pair remained sustained at around the strong resistance level of 1.3337. The US Dollar Index continued touching new heights uplifting the USD/CAD to a three-week high level. However, the pair couldn’t carry on the upward rally amid the tightening of Crude prices.

Crude prices have uplifted on the back of supply shortage and hopeful signs of global economic growth. West Texas Intermediate (WTI) was up 1.4 percent knocking off its four-month high price level. The US sanctions on Iran and Venezuela helped to keep the prices stagnant at high levels.

Economic improvement underpinned on the news that China had put down the additional auto tariffs applied on US vehicles. This action of conceding shows definite signs of easiness to develop between the Super Powers. A combined effect of all these global cues will have a significant impact on the major currencies making up the Loonie pair.

Key Events Influencing USD/CAD Pair

A few moments ago, while the writing this article (at 12:30 GMT), US Consensus Bureau released four US February Durable Goods Orders reports. The significant Non-defense sector reported less than consensus estimation. The overall Durable Goods Reports came out above the expectation. After the release of the reports, the USD/CAD jumped from 1.3319 to 1.3330 levels.

By around 20:30 GMT, a mid-volatile crude related event is lined up in the North American trading session. The API will release its net crude stock numbers for the week commencing from March 25 to this day. The Institute computes the final figures from the data collected based on the production of the major petroleum products. These numbers are highly significant for the crude prices which in return will move the USD/CAD. The report had recorded an inventory of 1.927 million for the last week.

Technical Analysis

The main catchy thing in today’s chart movement for the loonie pair is the strong resistance level of 1.3337. The pair had touched this significant resistance level and suffered a major pullback twice during the mid-day session. When observed from an overall perspective, the pair seems to follow some exponential range-bound performance. The lows appear limited and the gains capped under robust resistance levels. The pair had drifted exploring the Keltner Channel (KC) and sustaining within the channel boundaries. USD/CAD was coinciding the center line of the KC revealing some slight upside in the future movement.