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USD/CAD Daily Forecast – 1.3345 Resistance Putting a Lid over Daily Gains

Nikhil Khandelwal

The Loonie pair had showcased an energetic upliftment last day, allowing the pair to reach 1.3337 top level. However, the USD/CAD pair seemed to lose the ground of the accumulated gains since today’s opening. Anyhow, the pair had taken a U-turn after touching 1.3309 level in the early morning session on Tuesday.

Crude prices nudged higher today over trade optimism. The US had recently mentioned regarding extension of a reprieve that allows China’s Huawei to buy components from the US Companies.

Significant Economic Events

The economic calendar stays light weigh on Tuesday amid lack of critical economic data releases. Nevertheless, the Canadian June MoM Manufacturing Shipments report might catch market attention at around 12:30 GMT. The street analysts expect this Shipment data to record -1.7% over the previous 1.6%.

In the meanwhile, the US YoY Redbook Index computed since August 16 would come out at 12:55 GMT. This Index reveals the same-store sales growth from a sample of US general merchandise retailers consisting of 9,000 stores. The YoY Redbook Index had reported 4.4% while the MoM statistics had recorded near -2%.

Later the day, the market would witness the release of the API Weekly Crude Oil Stock Change calculated since August 16. This Crude data had showcased 3.7 million, last time.

Technical Analysis

1-Month Chart

After taking a bounce off a multi-year slanting support line, the USD/CAD was underway attempting to breach above the 1.3669 resistance handle.

USDCAD 1 Month 20 August 2019

Anyhow, this resistance mark had successfully managed to put a lid over pair’s gains since the last two years. Anyhow, a triumphant move above the aforementioned mark would have enabled fresh challenges over the next target stalled at 1.4002 resistance mark. Interim, a below-lying Parabolic SAR was further providing the additional ammunition to the pair bulls.

1-Week Chart

On the weekly chart, the USD/CAD pair had recently crossed below a 1-year old slanting support line, signaling reversal trend.

USDCAD 1 Week 20 August 2019

However, green Ichimoku Clouds seemed to have arrived at the right time to catch the falling pair, acting as strong support. At any point, the pair might showcase some bullish price actions, retaining the uptrend. Notably, the pair was finding difficulty to jump above 1.3334 level or 61.8% Fibonacci Retracement level since yesterday.

1-Day Chart

On the daily chart, the pair seemed to stay capped under 1.3345 resistance level.

USDCAD 1 Day 20 August 2019

Despite that, the bulls remained resilient, exploring ways to climb new heights. Even if the Loonie pair drifts to the north side, significant SMAs remain stemmed near 1.3423, and 1.3519 levels might attempt to block such a positive move. On the flip side, critical support handles remain stalled near 1.3183 and 1.3018 levels.

This article was originally posted on FX Empire

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