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USD/CAD Daily Price Forecast – USD/CAD Snaps 3-Days of Winning Streak on Profit Booking Activity

USDCAD must hold above 1.3110/00 for bulls to remain in control
Colin First

The USDCAD pair snaps three consecutive days of winning streak despite a modest USD uptick and traded with a negative bias through the early European session today eroding a major part of the previous session’s up-move back closer to 1-1/2 month tops. Bearish traders seemed rather unaffected with a mild weakness in oil prices as the pair continued with its struggle to make it through the 1.3150-60 supply zones as USD bulls lose momentum despite a combination of supporting factors. As of writing this article, the USDCAD pair is trading at 1.3121 down by 0.11% on the day after hitting an intra-day low at 1.3101 earlier today.

Traders Await US CB Consumer Confidence Data For Momentum

Some renewed pickup in the US Dollar demand, supported by a modest uptick in the US Treasury bond yields, did little to assist the pair to build on last week’s post-BOC goodish up-move.  Traders also seemed uninspired by a mildly negative tone around crude oil prices, which tend to undermine demand for the commodity-linked currency Loonie, and rather preferred to take some profits off the table over recent highs hit by US Greenback. Relative thin US economic docket seems unlikely to provide any meaningful impetus in immediate future.

It would now be interesting to see if the pair shows any resilience below the 1.3100 handle or long-unwinding trade continues exerting additional downward pressure amid relatively thin US economic docket, highlighting the release of Conference Board’s consumer confidence index. Any follow-through weakness is likely to find support at 100-day SMA, around the 1.3080 region, below which the fall could further get extended towards mid-1.3000s. On the flip side, the 1.3130 level now seems to act as an immediate resistance and is followed by the 1.3150-60 supply zone, which if cleared might assist the pair to climb further towards reclaiming the 1.3200 handle.

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