Yahoo Finance USD/CAD Daily Price Forecast – USD/CAD Trades Dovish Ahead of US Macro Data Updates
The USDCAD pair has so-far experienced a sharp downside price action this week. Owing to recent recovery rally in crude oil price action in the global market, the pair has been on steady downside price action for last 5 consecutive trading sessions. During the course of this five consecutive trading session, the pair fell below multiple support levels and achieved a breakout in favor of Canadian Dollar albeit still remaining above psychological support level that will give CAD bulls the complete control of price action. Meanwhile, macro data update inspired price action has put an end to ongoing downside rally during Pacific-Asia market hours earlier today.
Crude Oil Decline Failed To Impact CAD Bulls
The US dollar rebounded on the mixed signal from Fed meeting minutes update for the month of January which hinted at probability of rate hike plans for 2019 and this caused the pair to move back above 1.3195 handle but Fed Chair Robert Kaplan reiterated dovish stance of Fed and this led to pair declining once again in Asian market hours. However, macro data from the US – API crude oil weekly stock data showed an increase in value. This caused crude oil price to decline. Canadian Loonie being a commodity-linked currency initially saw a slowdown in price action but as crude oil price remained above critical levels, CAD bulls managed to erase gains from early Asian market hours.
As of writing this article, USDCAD pair is trading at 1.3174 down by 0.07% on the day. Moving forward, investors await macro data updates for meaningful trading opportunities and short term directional cues. On the release front, US calendar sees the release of PMI’s and existing home sales data, core durable goods order data, Philadelphia Fed manufacturing index data and EIA crude oil inventory data while Canadian calendar sees the release of wholesale data and speech from Bank of Canada governor Stephen Poloz. When looking from a technical perspective, the pair faces strong resistance near 1.3200 and 1.3240 handle to the upside and 1.3140, 1.3100 handles as support on move to the downside.
This article was originally posted on FX Empire
