USD/CAD Daily Price Forecast – The Loonie may Upsurge Post Release of USD & CAD Events

The Loonie extended last day’s plunge rally into the Friday’s trading session. Later, the pair found support near 1.3435 levels and reversed upwards from that pivotal point. The USD/CAD pair continued moving upwards but couldn’t breach the intense 1.3477 resistance levels. The pair was later lingering near 1.3457 levels during the day’s mid-session.

The Crude was down following the US-led new tariffs on $325 billion Chinese goods. The Loonie weighs heavily when the Crude Oil prices increase, as there is an inverse relationship between both entities. Hence the USD/CAD pair saw a slight decline after the oil prices went upside in the Asian session. The Crude Oil WTI Futures Index was trading near 62.10 dollars per barrel at 09:45 GMT.

The Greenback remained stabilized despite the ongoing US-Sino Trade tensions. Yesterday the US Trade Balance came out negative 50 billion than expected negative 50.2 billion. Anyhow, the positive statements from the Fed’s Powel allowed the Green money to settle in consolidation mode. The Greenback which is the most substantial index computed against its six rivals remained unchanged today. The USD/CAD pair got benefited out of the performance of the Green money.

However, the traders today await the upcoming bullish CAD and USD events. If the data appears as expected, then this would drastically drive the Loonie to breach 1.3477 levels in the further session.

USD/CAD Influencing Events

Today, the CAD economic events displayed a bullish outlook in the consensus estimates. The Unemployment Rate and the Net Change in Employment report will release at 12:30 GMT. The analysts anticipate the Unemployment report to remain the same as the previous 5.8 percent. And, they expect a higher reading in Employment Change data. Moreover, the Average Hourly Wages and the Participation Rates are also awaited to come in-line with the prior numbers.

Over the USD specific events side, at 12:30 GMT, the CPI data would get published. This time the street analysts expect the YoY CPI excluding Food & Energy to come near 2.1 percent. They anticipate a 0.1 percent increase in the MoM CPI excluding Food & Energy.

Furthermore, the Fed’s Brainard and Raphael W. Bostic would express their opinions over the US economic situation. And their statement may impact the pair in the next session.

At 19:30 GMT, the CFTC Oil NC Net Positions would get displayed, and last time it reported near 524.1 thousand.

Technical Analysis

Two Significant resistance levels at 1.3499 and 1.3518 levels restrain the pair from creating fresh monthly highs. The Bollinger Bands held the USD/CAD pair in its lower vicinity revealing bearish signs. The pair was trading slightly above the major 200-days SMA, showing neutral/bullish perspective. The 50-days near term SMA was hovering above the other robust SMAs and the Loonie, developing downtrend outlook. The RSI was drifting near 42 levels indicating reduced investor interest.