Technical Analysis

USD/CAD strikes in direction of key trendline help as loonie positive factors on larger oil

USD/CAD trades at session lows with the loonie inching larger

USD/CAD D1 01-03

Value is now buying and selling below 1.3140 because the loonie continues to achieve additional energy on the session with oil buying and selling up by zero.eight% at this time, as WTI sits at $57.70 at the moment. For USD/CAD, value is transferring again in direction of the important thing trendline help since February final yr. The help stage has helped to maintain the upside momentum intact after being examined twice within the new yr and that stage now sits at 1.3118 at this time.

Therefore, look in direction of that as a key barometer for any additional draw back transfer in USD/CAD, whilst value begins to fall beneath the 200-day MA (blue line) @ 1.3163 at the moment.

Oil D1 01-03

Because it stands, oil costs are nonetheless maintaining their bullish momentum as consumers break again above the 100-day MA. Nevertheless, they’re nonetheless discovering some hassle round minor resistance @ $57.96 from the mid-November excessive.

So, keep in mind that there are two ranges to be careful for when you’re buying and selling on a loonie break right here as at the moment the forex is sort of extremely depending on motion in oil costs to dictate its subsequent directional transfer.

As an apart, be cautious of Canadian month-to-month GDP and manufacturing PMI knowledge to come back in North American buying and selling. And likewise the very fact that there’s a first rate chunk of expiries for USD/CAD at 1.3150 at this time, so that might doubtlessly be a magnet to restrict any draw back transfer.

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