After hitting the 1.3340 top mark yesterday, the USD/CAD pair appeared to slow down a bit today. The pair swiftly made the opening on Friday near 1.3318 mark and was following a range-bound approach, staying within 1.3323/11 levels.
Crude Prices Forming a Descending Triangle
Oil prices upshot on Friday following upbeat US Retail Sales data releases on the previous day.
“The robust U.S. economic data released overnight is providing some degree of comfort as it suggests a less gloomy U.S. domestic outlook and will walk back some of the more immediate recessionary concerns,” Stephen Innes, managing partner at VM Markets, said in a note.
On the technical side, the Crude prices appeared to form a descending triangle trading pattern despite today’s positive move. Strong resistance conflux consisting of the 50-day, 100-day, and 200-day SMAs kept hovering above the Crude prices, strengthening the bears.
Significant Economic Events
US July Housing Market data releases would remain as the critical point of interest for traders today. The street analysts stay bullish over the July MoM Housing Starts and Building Permits data. Notably, the market estimate the July Housing Starts to report 1.257 million over the prior 1.253 million.
Another highly crucial USD-specific event – August Michigan Consumer Sentiment Index would come out at around 14:00 GMT. The consensus estimate this index to record 97.2 points this time over the last 98.4 points.
On the Canadian economic docket, traders can also provide a glance over the June Canadian foreign and domestic investment portfolios.
Meantime, Baker Hughes US Oil Rig Count data might attempt to tweak the daily Crude price actions. This Crude data had reported 764, previous time.
On the daily chart, the Loonie pair was heading to the south side, recalling the Death Cross of mid-July. Anyhow, ability to move to the upper side would activate robust resistances stalled near 1.3345, 1.3428, and 1.3521 levels. On the flip side, 1.3238, 1.3182, 1.3113, and 1.3018 stable support levels might act as an immediate stoppage in case of any potential downfall.
The USD/CAD pair was hovering well above the Red Ichimoku Clouds, showing bullish dominance. Also, the base line and the conversion line stood below the pair, providing additional support.
Nevertheless, the below-lying Parabolic SAR was almost at proximity to the trading pair. Hence, the Parabolic SAR might move above the pair at any point, reversing the near-term trend. Also, the MACD line has almost crossed below the signal line, calling for bearish price actions in the upcoming sessions.
This article was originally posted on FX Empire
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