- US Dollar remains in limelight ahead of key events.
- Break of 12-week old resistance-line propels the quote towards 1.3470.
USD/CAD is taking the bids around 1.3440 ahead of European open on Friday. The quote recently provided a successful break of 1.3410 trend-line resistance as traders preferred the US Dollar (USD) over the Canadian Dollar (CAD) ahead of the key global events that highlighted risk sentiment.
While the US President Donald Trump’s push to the OPEC alliance for production increase couldn’t drag the crude prices down, subsequent Reuters report that the US is ordering foreign firms to cut Venezuelan oil imports also failed to fall short of fuelling the WTI much higher.
The reason could be more attention on the greenback ahead of the key risk events like developments of the US-China trade talks, Brexit parliaments vote, Canadian GDP and second-tier data from the US.
While the US delegates do sound positive during their two-day Beijing visit for trade negotiations, they still don’t turn down the threat of a fall as key issues still remain unsolved. On the other hand, Brexit is a looming uncertainty that is more likely to offer another humiliating defeat to the UK PM Theresa May from the House of Commons Brexit parliament vote.
In case of the data, Canada’s January month gross domestic figure (GDP) figure may print 0.0% against -0.1% earlier while the US personal income and spending might end up flashing +0.3% figure for February versus -0.1% and -0.5% respective priors. Moving on, the Chicago purchasing managers’ index (PMI) is bearing the expectation to decline to 61.0 from 64.7 but new home sales may rise to +0.620 million from +0.607 million in February.
It should also be noted that the Baker Hughes US oil rig counts for the week ended on March 22 could also become important for the USD/CAD pair traders as crude is Canada’s largest export item.
USD/CAD Technical Analysis
Successful break of twelve-week-old resistance-line (now support) can further fuel the pair towards 1.3470 comprising high of March 07/08 and low of January 03. Should prices manage to clear 1.3470 upside barrier, 1.3510 and 1.3565 may appear on bulls’ radar.
On the downside, previous resistance now acts as immediate support near 1.3410, a break of which can recall 1.3370 and 1.3330 rest-points on the chart.
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