Can consumers efficiently discover a break above the important thing stage?
The pair is discovering strong momentum to start the brand new buying and selling day as worth is buying and selling on the highs now above the 100-day MA (crimson line) @ 1.3220 in addition to the September excessive of 1.3226. The previous can be a key stage to be careful for in buying and selling at present. If consumers maintain above that, the bias/momentum within the pair will flip extra bullish.
Oil is struggling a bit of buying and selling close to the lows, falling by zero.5% at present to $53.74, so that isn’t actually serving to the loonie. That mentioned, I keep that oil ought to nonetheless commerce narrowly on condition that we’re nonetheless ready on extra developments to come back earlier than the OPEC+ assembly in April. Manufacturing cuts and Venezuela sanctions have helped underpin costs in direction of the $55 deal with however merchants are struggling to search out conviction to interrupt increased so worth might settle between $50 and $55 till we get new drivers of course.
As for USD/CAD, buying and selling appears to be extra technically centered in the interim as worth momentum now shifts in direction of favouring the upside after consumers held a protection of the trendline help close to 1.3060 final Friday.
Ought to worth verify a every day break above the 100-day MA, upside potential within the pair appears enticing with additional resistance solely seen across the July highs @ 1.3290 earlier than swing highs round 1.3320 and 1.3360 come into play.
As soon as once more although, the caveat right here can be developments in US-China commerce talks so maintain a watch out on that. However as talked about earlier than, the extra that sits in limbo, it ought to nonetheless maintain the greenback favoured in the interim.