After quoting the daily opening near 1.3214 level, the USD/CAD remained muted in the first six hours today. Laterwards, the resilient bulls took the pair to the north side, touching 1.3248 level. Quite notably, the pair was struggling to breach above this aforementioned resistance handle. Anyhow, the efforts seemed to yield no fruits, and the pair continued to linger around the same mark in the Asian session.
Meantime, the Crude Oil WTI Futures had risen last night, reaching $57.41 per barrel over optimistic trade news. Yesterday, Trump had announced a further delay on imposing 10% tariffs on half of the $300 billion target Chinese goods. However, the oil prices appeared to rebound downwards following the rising US API Crude Inventory report. This API report had recorded -3.40 million last time. Anyhow, the actual statistics came around near -2.19 million.
Significant Economic Events
The economic calendar stays quite light on Wednesday in terms of USD/CAD-impacting economic events. Anyhow, a few low volatile USD-specific events might attempt to tweak pair’s daily price actions. The July Import and Export Price Index would come out at around 12:30 GMT. The market remains slight bullish over both the Import and the Export data.
Canadian economic docket continued to remain silent amid lack of CAD-specific events.
In the meantime, the EIA Crude Oil Stocks Change computed since August 9 would remain as another momentous event for the USD/CAD traders. The Street estimates this Crude data to report near -2.761 million over the market hopes of around 2.385 million.
After taking a bounce off from a two-year-old slanting ascending trend line, the USD/CAD pair was heading to the north. Ability to break above the 1.3329 support-turned-resistance would signal for the pair’s strength above 1.3518 mark.
Nevertheless, even if the pair makes a triumphant move above the aforementioned upside barriers, then that would enable fresh challenge on robust 1.3725 resistance. Quite notably, the MACD line and signal remained below the zero-line, signaling low possibilities of a major bull run in the near term.
On the daily chart, the strong negative sentiment seemed to remain intact. The 50-day SMA had already crossed below the other long term substantial SMAs, marking a Death Cross.
On the contrary, the pair had broken above the major downtrend channel, providing slight ease to the near-term bulls. However, robust 200-day and 100-day SMA confluence, was restricting the upside. Additionally, resistances remained stalled near 1.3269 and 1.3345 handles. After close watch of the technical, the pair might stay within the 1.3181 and 1.3300 range levels.
This article was originally posted on FX Empire
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