USD/CAD Daily Price Forecast – The Loonie Pair Broke Previous Strong Support Line of 1.3370
The Loonie pair extended the Friday’s consolidation phase into the Monday trading session. USD/CAD remained sustained in the upper vicinity of 1.3370 and 1.3380 levels.
Most of the candlesticks during the Asian trading session had longer upper shadows and shorter lower shadows which denotes buyer domination. The loonie pair created a fresh daily high of 1.3393 level as well as a new daily low of 1.3370 level during the early session.
USD Index continued its two-day downward rally reaching 97.21 level at 10:30 GMT. The index is heading to the strong support level of 97.19 level. The US Dollar Index had fallen over rising concerns on geopolitical issues in the Libyan grounds vis-a-vis the US.
The EUR/USD pair had jumped in the morning session after the release of positive German Trade balance report. This upliftment in the rival currency also weighed down the greenback.
Burgeoning Crude Prices
The OPEC’s continued supply cuts have moved the crude prices up reaching a 5-month high. The continued Military conflicts in Libya is making the country’s crude to go offline. The supplying capacity of the country is over 1 million barrels a day which got undermined. Supply of oil is falling short of the demand which is the crucial factor behind influencing the barrel cost.
This upsurge has elevated the commodity-linked currency Canadian Dollar, thereby pushing down the USD/CAD.
The pair’s future movements will rely on the US and CAD events to happen later the day.
Key USD/CAD Influencing Events Lined Up For Today:
The Canadian Mortgage and Housing Corporation will publish the Housing Starts s.a (YoY) for March. The report taps data about the number of new houses constructed. The consensus estimates a high reading of 193.0K than the previous 173.1K.
Statistics Canada will issue the February Building Permit for new construction projects.
The report is crucial because if there is any increase or decrease in the number of projects, it will impact the CAD. The Market analysts are expecting a bullish stance over the Permit with 0.2 percent than the previous -5.5 percent.
The US Census Bureau will publish the Factory Orders (MoM) for February month. The report calculates the total orders of durable & non-durable goods. It is an important economic indicator as it provides status about the manufacturing sector. The consensus estimates a decrease in the numbers to come around -0.6 percent to the previous 0.1 percent.
USDCAD 5 Min 8 April 2019
The 21-day Simple Moving Average (SMA), 55-day SMA, 100-day SMA, and 200-day SMA lied above the loonie pair. This position of USD/CAD shows some strong bearish movements for the pair. The Relative Strength Index (RSI) was hovering below 40 levels. The USD/CAD had broken the strong support line of 1.3369. The overall sentiment as per technical analysis is bearish, but the loonie seems to act resilient and sustain range-bound movements.
This article was originally posted on FX Empire
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