USDCAD has settled at softer levels amid a generally consolidative tone in the U.S. dollar today. The pair yesterday logged a 15-day high at 1.3212, putting in some more upside space form the five-month low at 1.2968 that was seen last Tuesday. The 200-day moving average at 1.3176 on the Daily chart now reverts as a support level, which is presently in play. Oil prices have posted three straight sessions of declines, which, if the nascent trend sustains, may give USDCAD an underpinning. Today however, front-month WTI futures res are down for a third day, earlier clocking a 19-day low at $51.55, having yet again failed at the key $54.00 level earlier this week. The declines follow an unexpectedly large increase in U.S. crude inventories in the latest reporting week, according to API data. The 14.2 mln barrel increase is the second highest weekly rise on record in the API data series. The median forecast had been for a 2.5 mln barrel increase.
On the 1 hour chart USDCAD broke the crossing 10 and 20 period moving averages earlier this morning and has just spiked down to the limit of the lower Bollinger band and the 4 hour, 10 period moving average at 1.3148. The MACD and RSI remain negative and the next target and support area is the 50 period moving average at 1.3138. The Daily and 4hr resistance zone is 1.3192 – 1.3203.
Click here to access the HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our latest webinar and get analysis and trading ideas combined with better understanding on how markets work.
Click HERE to register the next webinar will start in:
Senior Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.