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USD/CAD Daily Forecast – Multi-Frame Analysis Supporting the Bulls

Nikhil Khandelwal

After a small dip in the last week of August, the Loonie pair started September with some fresh upside recovery moves. However, after knocking off the 1.3360 highest mark last day, the pair bulls appeared to slow down.

Anyhow, the pair opened up near 1.3334 level on Tuesday and was taking rounds near the opening mark in the early hours.

Significant Economic Events

Canadian and US August Markit Manufacturing PMI data releases stay at the center stage as the primary driver for the pair’s daily price actions. Notably, the market expects the US Manufacturing PMI data to remain in-line with the previous 49.9 points.

Another key point of interest would remain the highly crucial August ISM Manufacturing PMI. This time, the street analysts keep a slightly bearish stance over this data, expecting 0.39% below the previous 51.2 points.

On the Crude front, the API Weekly Crude Oil Stock data computed since August 30 might act as a robust oil-catalyst event. This data had recorded -11.1 million, previous time.

Technical Analysis

1-Month Chart

On the monthly chart, the USD/CAD was taking the shape of a symmetrical triangle and has almost reached the apex of the triangle. Meantime, the pair stays well above the green Ichimoku Clouds, sustaining strong uptrend prospects. Anyhow, the Stochastic Oscillator was indicating near 50 mark, showing a lack of momentum in the price actions. However, the MACD line and Signal line stood well above the zero line, maintaining bull strength.

USDCAD 1 Month 03 September 2019

Hence, from on a broader view, chances of a breakout remains high. In such a case of a positive outbreak, the resistances stalled near 1.3697 and 1.3985 levels would get triggered.

1-Week Chart

Noticeably, the USD/CAD bulls have entered into the upper region of the Bollinger Bands, triggering a positive outlook. On heading further upside, the Loonie pair might encounter sturdy resistances stemmed near 1.3430, 1.3521, and 1.3637 levels.

USDCAD 1 Week 03 September 2019

Meantime, the pair was trading well above a firm support cluster comprising of major significant Simple Moving Averages (SMA). Anyhow, the Relative Strength Index (RSI) was showing 50 levels, revealing neutral buyer interest.

1-Day Chart

On the daily chart, the pair was testing the sturdy 1.3345 resistance level in the Asian trading session. Anyhow, the bulls were struggling to make a move above the aforementioned handle since August 7.

USDCAD 1 Day 03 September 2019

Meantime, the ability to march triumphantly above the 1.3345 mark would immediately open up challenges over 1.3429 and 1.3572 resistances. Also, the Average Directional Index (ADX) was lingering below 25 mark, forecasting a range-bound or consolidated daily movement. Interim, a solid one-month-old slanting support line stood below the pair, preventing any potential downside.

 

This article was originally posted on FX Empire

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