- Investors turn cautious before the key the G20 acquires the headlines.
- WTI fails to hold the 200-EMA breakout amid doubts over the future US-China trade deal.
Despite witnessing the crude’s rally to 5-week high, the USD/CAD pair offers little moves near the four-month bottom while taking the rounds to 1.3117 during early Thursday.
The underlying reason for the present Loonie moves could be WTI’s profit-booking on the break of the 200-day exponential moving average (200-EMA).
Adding to the list is the nervous trading session as the 20 global leaders head for the meeting in Japan where trade protectionism will be the key, not to forget the US-China deal’s ability to grab the spotlight.
Global risk sentiment gauge, the 10-year US Treasury yield is likely losing early-day strength while clocking in 2.042% by the press time.
Moving on, the Canadian economic calendar remains empty for the day while final reading of the first quarter Q1 2019 gross domestic product (GDP) and Personal Consumption Expenditure Prices from the US may entertain market players.
The US GDP (QoQ) is likely to reconfirm 3.1% previous forecast growth on an annualized basis while the Personal Consumption Expenditure Prices is also expected to remain unchanged at 1.0% on a quarterly format.
Technical Analysis
Despite oversold levels of 14-day relative strength index (RSI), February month low near 1.3070, adjacent to November 2018 bottom surrounding 1.3050, can entertain sellers during further declines ahead of challenging them with 1.3000 round-figure.
On the other hand, 1.3180 and early month low near 1.3242 can limit the quote’s near-term upside.
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