USD/CAD Daily Price Forecast – The Loonie Sandwiched Betwixt Weaker DXY And Higher Crude Prices
The Loonie pair set fresh lows for the week after making a recovery trial last day. USD/CAD started the day at 1.3344 level and later slipped consistently reaching 1.3295 level. There was hardly any upward movement for the USD/CAD during the Asian trading session. If it continues to downtrend, the pair will undoubtedly encounter the March strong support levels present in the vicinity of 1.3274 and 1.3255.
USD Index (DXY) had fallen drastically from 97.29 level reaching 96.96 level since the morning session. Reasons seem unidentified like how the greenback grew stronger last day over weaker Durable Goods Orders reports. But this time DXY is experiencing severe pullbacks increasing the selling pressure on the currency index. However, US Treasury Bond Yields saw upliftment and US-Sino Trade talks gave a favorable status quo which must have elevated the DXY.
Upsurging crude prices led to additional stress to the USD/CAD. Crude Oil had knocked off new multi-month highs reaching $63 per barrel amid global tensions.
Investors will remain unnerved until the loonie pair takes a u-turn upwards.
Key USD/CAD Influencing Events Scheduled For The Day:
12:15 GMT (Mid Volatile Event)
The Automatic Data Processing, Inc of the US will broadcast the March Employment Change. The report will evaluate the change in the number of employed people in the US. A higher number may indicate an increase in consumer spending thereby encouraging economic growth. A Bearish expectation by the Consensus estimate with 170 K against the previous 183K.
13:45 GMT (Mid Volatile Event)
The Markit Economics will publish the PMI Services and PMI Composite on Manufacturing and Service sector for March month. The PMI is crucial to suggest overall economic conditions in the US. The Service sector is vital because it occupies a large share of US GDP. The Market analysts estimate stand in-line to PMI composite with 54.3 percent and PMI Service with 54.8 percent.
14:00 GMT (High Volatile Event)
The Institute for Supply Management (ISM) will release the March Non-Manufacturing PMI for the US. The Index will tend to reflect the status of business in Non-manufacturing sector. The market analyst is expecting a Bearish stand with 58.0 percent over the previous figure of 59.7 percent.
USDCAD 5 Min 3 April 2019
The pair saw a downtrend during the day reaching 1.3297 level. The Simple Moving Averages (SMA) for the major days lie above the loonie pair showing a bullish stance in the upcoming movements. The Moving Average Convergence Divergence (MACD) remained positioned in the lower vicinity of the indicator showing low buy signals. The Relative Strength Index (RSI) showed fewer signs of overbuying or overselling during the day.
This article was originally posted on FX Empire
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