USD/CAD Daily Price Forecast – The Loonie Remains Aloof from any Appreciation

The USD/CAD pair kicked off the day near 1.3455 levels and moreover up trending. During the Asian Session, the pair touched 1.3480 levels and created a new high for the day. However, the pair remained within the range of 1.3450 and 1.3480 levels.

Today in the Morning hours, the crude oil prices continued to slump following Trump’s call yesterday. The economic data for China’s PMI came out in the Asian session. The Chinese PMI remained lower than anticipated. These factors resisted crude oil prices from any new corrections.

Additionally today, the USD/CAD pair is not gaining any appreciation further from the market’s bearish outlook. The Bank of Canada’s Rate Decision and Canada’s GDP data anticipates a drop in the currency volatility. This outlook has further missed the GDP/USD from overrated.

The US Dollars continued to slump down today, and earlier the US PCE reports failed to uplift the currency. Today the US-specific events expect the market to go bullish over the previous numbers. If the data takes a positive side, then the USD/CAD pair may eventually rise.

USD/CAD Significant Events

CAD Specific Events

15:00 GMT

The BoC’s Governor Poloz Speech – The Governor of Bank of Canada, Stephen S. Poloz will deliver a speech today. The Governor would talk about the policy rate decision and the Monetary Policy Rates.

12:30 GMT

The CAD Feb MoM GDP figures – The event is a highly significant expected to move the pair post-release drastically. The street analysts believe the numbers to drop 0.2 percent, to the prior 0.3 percent.

USD Specific Events

13:00 GMT

Feb YoY S&P/ Case-Shiller Home Price Indices – The statistics would tap the real estate market which tends to volatility in the prices. The street analysts remain bearish with their number to come around 3.2 percent.

13:45 GMT

Chicago April PMI – The PMI report will record the business situations among Michigan, Indiana, and Illinois. The consensus estimates growth with 0.3 percent to the previous 58.7 points.

14:00 GMT

US March (Both MoM & YoY) Pending Home Sales – The market awaited to report a 1.5 percent hike than the previous negative 1 percent. This index is prominent over the USD, and hence it stays significant with the USD/CAD pair.

Technical Analysis

The loonie had recently crossed the EMA of the Bollinger Bands (BB) showing strong reversal point. All the significant 50-days SMA, 100-days SMA, and 200-days SMA stood well above the tumbling loonie. This position of the USD/CAD pair reveals a fall in the near term. The investors remained mull and went unnerved, as RSI was drifting near the lower 40 levels. The loonie was moving towards the robust support line of 1.3442 levels. There are chances the pair may rebound from this support point.