USD/CAD: WTI declines couldn’t stop a pullback to March high, US GDP awaited

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  • Investors prefer booking profits off the USD longs ahead of important data.
  • An area between 1.3465 and 1.3520 might restrict the pair’s immediate moves.

USD/CAD is currently witnessing a pullback to March month high near 1.3470 during early Friday. The pair gave little importance to WTI declines and rather concentrated on profit-booking of the US Dollar (USD) ahead of the US GDP.

While the greenback remained on a back-foot against the majority of its counterparts on Thursday, it managed to remain positive compared to the Canadian Dollar (CAD) as traders kept focusing on the Bank of Canada’s (BOC) dovish outlook. Adding to the CAD weakness could be soft prices of Crude, Canada’s main export.

Off-late markets have turned rather cautious towards pilling more of the USD ahead of the crucial Q1 2019 gross domestic product (GDP) data.

Even if recent statistics from the US have been upbeat, markets expect 2.1% annualized figure of the GDP compared to 2.2% prior.

Additionally, the US and Japan’s trade talk aren’t going well as Japan strongly resist linking currency to trade.

Technical Analysis

Should prices slip beneath 1.3465/70 area comprising March high, 1.3450 and 1.3400 could gain sellers’ attention ahead of 50-day and 100-day simple moving average (SMA) confluence near 1.3340.

Alternatively, 1.3520 and 1.3565/70 holds the gate for the quote’s rally towards 1.3620 and 1.3665.

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