After making a slip from 1.3311 mark last day, the pair had found significant stoppage near 1.3225 level. Notably, the USD/CAD pair was lingering near the same levels in today’s Asian trading session.
Oil Prices Surge on Output Cut Hopes
The Crude Oil WTI Futures had soared 4.59% on August 7, reaching $52.83 per barrel. Today, the oil prices continued to remain sustained between $52 bbl and $53 bbl range level. The buyers had allowed the prices to inch up, expecting the OPEC to cut production in the near-term. Anyhow, concerns over US-Sino trade war kept the downward pressure intact, capping any potential gains.
On the technical side for the Crude, the prices had already breached and moved below a healthy one-year-old slanting ascending support line. On the downside, the prices had earlier tested the $50.70 bbl mark and might revisit the same handle in the upcoming sessions. Ability to break below the aforementioned handle would call for weakness in the commodity, activating $44.39 bbl and $42.38 bbl support levels.
Key Economic Events
After a long time, the market will witness some CAD-specific economic data releases today.
At around 12:30 GMT, Statistics Canada will publish the July Canadian Net Change in Employment and Unemployment data. This time, the street analysts expect the Employment statistics to come around 12.5K over the prior -2.2K. Somehow, the market expects the Unemployment data to remain in-line with the previous 5.5%.
In the middle of the day, the Canadian July YoY Average Hourly Wages and Participation Rate report release might attempt to tweak the pair’s daily price actions.
On the USD-side, traders must provide a glance over the slightly bullish expected July Producer Price Index (PPI) that excludes Food & Energy. The market forecasts the PPI to come around 2.4% over the last 2.3%.
The USD/CAD pair had crossed and jumped above a major counter trendline on July 25, encouraging the bulls. Quite noticeably, the pair was already under formation of a strong uptrend channel that breached the aforementioned counter trendline.
Also, the 50-day SMA had already moved above the significant 200-day SMA, making a Golden Cross, luring the buyers. Anyhow, the Relative Strength Index (RSI) remained stuck near 44.80 mark, showing neutral buyer interest.
On the hourly chart, though the price actions remained in the lower vicinity of the Bollinger Bands, the pair was heading to the north. Needless to say, the below lying Parabolic SAR provided additional support, pushing the pair above the center line.
Nonetheless, the USD/CAD pair had already lost hold of an 8-day old slanting ascending support line, pleasing the sellers. However, in the near term, traders might witness some slight positive price actions, considering the north side facing RSI, lingering near 40 mark.
The article was written by Bharat Gohri, Chief Market Analyst at easyMarkets