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USD/CAD Daily Forecast – Technicals Suggesting Short Term Bearish Trend

Nikhil Khandelwal

The Loonie pair experienced significant downfalls on Friday and remained consolidative near 1.3276 levels in the Asian trading session. The pair appeared to lack any particular direction in the early hours moving in the bottom vicinity of the chart.

The market witnessed the US Dollar Index shedding most of its accumulated gains on Friday over disappointing US Non-Payroll figures. The US economy was able to create only 75,000 jobs in May. Following such weak reports, the Index dropped 97.05 levels to 96.47 levels. This fall also spilled some cold water on the USD/CAD pair, making it shrink to 1.3225 levels. However, the Greenback has grown in the morning session reaching near 96.85 levels. The USD Index took up recovery as Trump decided not to threaten Mexico with tariff duties. The US President mentioned that the pressurization was necessary to push Mexico to curb the migration issues. Trump also addressed that the US would buy more agricultural products from the neighbor country soon. Such a positive update over the US-Mexico trade front uplifts the overall investor sentiment.

OIL 60 Min 10 June 2019

Meanwhile, the Crude Oil WTI Futures was taking rounds near $54.00/50 per barrel marks. The commodity prices continued to take the upward path as Saudi Oil Producers stick to keep the supplies restricted. The OPEC members would follow supply cuts through the rest of the year. Baker Hughes US Oil Rig Count recorded 1.39% lower than the previous 800 counts revealing higher market demand. Also, mitigation of US-Mexico trade tensions further helped develop more ease in the global economy.

Key Influencing Events

There is hardly any significant US/CAD event lined up for the day to affect the pair’s future movements. However, there are a few low significant USD-specific and CAD-specific event coming up.

Canadian Housing data will come at around 12:15 GMT. The Street analysts have set a bearish sentiment on the awaited reports. Also, April JOLTS Job Openings might record lightly lower figures over the previous 7.488 Million.

Technical Analysis

USDCAD 60 Min 10 June 2019

The overall trend remains bearish for the pair in the upcoming movements. The 50-days, 100-days, and 200-days SMA were hovering above the trading pair revealing downtrend signals. The pair was trading near the monthly bottom after sustaining a bounce from the 1.3237 support levels. The USD/CAD pair continues to remain in the lower bracket of the Bollinger Bands. Hence, there are chances that the pair might cross the centerline in the short run. Relative Strength Index (RSI) indicated slightly above 25 marks, showing weak buying interest.

This article was originally posted on FX Empire