- Global trade pessimism confronts USD pullback.
- News reports to gain major attention amid short economic data line.
With the broad US Dollar (USD) weakness joining WTI pullback, the USD/CAD pair is nearly unchanged at 1.3440 during early Monday.
With the latest data from the US economy have been on a soft side, the greenback recently failed to extend its previous upside.
On the other hand, WTI’s U-turn from the 100-day simple moving average (SMA) is also failing to sustain questions about global economic growth and looming concerns for the US-China trade deal drags the energy benchmark down.
Looking forward, the global economic calendar has nothing major to entertain momentum traders, which in turn highlights the importance of qualitative catalysts like news reports concerning global trade and developments between the US and Iran.
Crude is Canada’s largest export-item and hence has a larger impact on USD/CAD.
Technical Analysis
Only if the quote slides beneath 50-day SMA level of 1.3400, it can decline towards 1.3360 and 100-day SMA level near 1.3330 else chances of its extended run up to clearing a month old downward sloping trend-line, at 1.3510 now, and then to 1.3570 can’t be ruled out.
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