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USD/CAD Daily Price Forecast – Loonie Bulls Catching Momentum

Nikhil Khandelwal

The Loonie opened up on Friday morning after rebounding from the previous day losses. The pair had lost ground yesterday in the middle of shooting Crude prices. And, the later recovery processed on the back of robust US data released in the North American session.

Today, regardless of higher crude oil prices, the Loonie surprised the traders with positive percentage change. The USD/CAD pair had soared around 0.27% in the Asian trading session. The Loonie touched its intraday high at 1.3497 levels.

The major reason for this movement remains due to increased demand for the Greenback. The US Dollar Index was hovering near its multi-day peaks in the early hours. Investors seem to develop keen interest over the Greenback amid alluring US economic data. On Thursday, the US Housing data, Unemployment numbers, and Philly Fed’s May Manufacturing Survey had showcased astounding results.

Meanwhile, the US-Sino trade talks missed new headlines during the day. However, temporary silence over that front helped the US 10-year Bond Yields uplift reaching 2.41% high levels. This Yield growth added more power to the already rising Greenback.

On the other side, the uplifting Crude prices continued putting downward pressure on the Loonie. The Oil Futures were trading near $63.62 per barrel, 3.85% up since Monday opening. The commodity’s prices extended upsurge amid intensified Middle-East tensions over attacks on Saudi Oil Supply.

USD/CAD Impacting Events

Ahead of the day, Investors do anticipate the May Michigan Consumer Sentiment Index. The Market stays bullish over the Index, expecting a 0.31% growth this time. The University of Michigan will release the Index at around 14:00 GMT. The upcoming session will exhibit the discussions with the Fed’s significant administrators. Firstly, the Vice Chairman of the Fed’s Board of Governors will speak on Monetary Policy reviews. Laterwards, the Fed’s William would give his opinions about the current economic situations in the US.

Technical Analysis

30-Minutes Chart

USDCAD 30 Min 17 May 2019

The Loonie has breached the upper boundary of the Keltner Channel (KC), alluding a bull call. The upper band of the KC appeared near 1.3489 levels, and the lower band was near 1.3448 levels. The Cable was hovering above the Central line of the KC and indicated an uptrend. If the Loonie continues to move upward, then a resistance level around 1.3520 awaits for the Loonie.

3-Hours Chart

USDCAD 180 Min 17 May 2019

The USD/CAD pair remained in the upper part of the Bollinger Bands (BB) indicating a bullish outlook. The Moving Average Convergence Divergence (MACD) hinted bullish signals, lying above the dividing line. Also, the spikes in MACD was tilting upwards, showing an active trending market. The Relative Strength Index (RSI) stood at 67 levels and indicated an aggressive buying. The pair will likely remain along with these levels as traders wait for more information on US-specific events.

This article was originally posted on FX Empire

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