- Weaker DXY, higher oil and trade tariffs news keep the CAD underpinned.
- Focus shifts to the US and Canadian macro news for fresh trading opportunities.
The USD/CAD pair is seen making minor recovery attempts, as the CAD bulls take a breather after the overnight rally to 1.2925 levels and await the US and Canadian trade figures before the next push higher.
USD/CAD: Loonie lifted by US tariffs exemption news and higher oil
The major failed to sustain above the 1.30 mark in the US last session and from there embarked upon a downward spiral, with the losses accentuated on news of a potential US metals tariffs exemption on Canada, which rescued the CAD bulls from eleven-week lows.
The Loonie also benefited from the oil-price rally, after the US oil tracked the gains in its European counterpart, Brent, in the wake of the looming concerns over the Venezuelan exports.
The downside in the spot can be also attributed to broad-based US dollar weakness, mainly driven by a fresh rally in EUR/USD following upbeat comments by the ECB speakers. The USD index drops -0.16% to 93.75, having hit daily lows near 93.65 levels.
Attention now turns towards the trade figures from both the US and Canada for fresh trading impetus while the EIA crude stockpiles data will also have some impact on the resource-linked Loonie.
USD/CAD Technical Levels
According to the Ichimoku Cloud Analysis by RoboForex Team, “the markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 1.2910 and then continue moving upwards to reach 1.3135. Another signal to confirm further ascending movement is the price’s rebounding from the support level. However, the scenario that implies further growth may be canceled if the price breaks the downside border of the cloud and fixes below 1.2860. In this case, the pair may continue falling towards 1.2745. After breaking the upside border of the cloud and fixing above 1.2965, the price may continue moving upwards.”
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