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USD/CAD Daily Forecast – Technicals Indicating Sluggish Continuation of Downtrend

Nikhil Khandelwal

The Loonie pair remained quite silent in last day’s session amid lack of economic events. The pair had got stuck within the range of 1.3279 and 1.3252 levels. In the Asian session, the USD/CAD pair continued traveling on the same straight road near 1.3264 levels.

Today, one can expect the same kind of price action as the previous day from the USD/CAD pair. Ahead of the day, there are some bearish USD-specific events lined up. The pair might experience a plummet in correlation to the Greenback reaction over event outcome. In such a case, the Loonie pair would find some excellent support near 1.3235 and 1.3225 levels.

US Dollar Index

The USD appears to move south following a medium-term downtrend since the start of June. Major resistance lines near 97.80, 97.38, 97.19, and 96.93 levels kept the Index pushing down. The US Dollar Index was taking rounds near 96.74 sound support marks today.

US Dollar Index 60 Min 11 June 2019

The downtrend has not yet broken and would continue to prevail in the coming sessions. From the current status, any movement above 96.93 resistance marks would be a pivotal reversal point for the Greenback.

In the meanwhile, the Crude prices that act as another catalyst for the Loonie pair’s movements remained stabilized. After opening near $53.33 bbl on Tuesday, the Crude prices made multiple attempts to break $53.64 bbl mark. However, the commodity prices remained capped under the same overhead resistance.

Economic slowdown aroused out of the rising trade tensions have left investors unnerved. Such a global sluggishness would lower the commodity demand in the market, putting pressure on its price. Meantime, the OPEC members continue to maintain supply cuts to keep the oil prices under control. Recently, reports also suggested that Russia would also support the supply cut extension in place since January.

Technical Analysis

The primary trend in the pair’s movements appears as a clear downtrend. Overhead resistance stands near 1.3294 levels trying to obstruct the pair’s upward movements. The tumbling rally seems to continue as the pair stalls reluctance to unleash out of the trend. The pair had displayed a somewhat sideways movement lingering near 1.3261/80 levels in the last few sessions.

USDCAD 60 Min 11 June 2019

Also, the significant 200-days SMA was trading well above the pair alluding bearish long term trend. However, the near-term 50-days SMA appeared to move south, aiming the pair. The 50-days might at any time travel below the pair developing a bullish stance in the near period. Anyhow, to keep the downtrend intact, the pair might revert after testing the 1.3294 resistance marks. The Relative Strength Index (RSI) indicated around 40 levels showing slight lower interest among the trader community.

This article was originally posted on FX Empire

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