The Canadian dollar could be boosted by the oil prices recovery

Walid Salah El Din FX Recommends

USDCAD is now hovering around 1.3220 right ahead of key inflation data to be released from Canada today, after it could be boosted by the oil prices recovery yesterday.

WTI is still trading close to $43 per barrel, after footing just above $42 per barrel.

WTI depreciation to that level could tackle the demand for loonies, as the Canadian economy depends on exporting commodities and crude oil especially to US.

While BOC is still expected to be the closest major central bank to follow the Fed in raising rates

After BOC senior deputy governor Wilkins surprised the markets earlier last week by her comment that the economic growth continues to broaden by ideally and there will be assessing of all placed stimulus measurement to see, if they are still needed.

Her comment could put pressure on USDCAD sending it down to 1.3164 from 1.3539 whereas it had been before Wilkins's comments.

After falling extension to 1.3164, USDCAD could find support to creep up to 1.3347 before retreating again the current level.

After facing difficulty to be above its daily SMA200 again while it is still keeping its current existence well below its daily SMA50, its daily SMA100, after topping at 1.3539 below its previous peak which has been formed at 1.3547 on this Jun. 2.

USDCAD is now in its eleventh day of being below its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading 1.3362 today.

USDCAD daily RSI-14 is still referring to existence inside its neutral territory, after fixing its oversold stance reading 35.859.

USDCAD daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is still having also its main line inside its neutral region at 44.878 leading to the downside its signal line which is at 57.323

Important levels: Daily SMA50 @ 1.3494, Daily SMA100 @ 1.3392 and Daily SMA200 @ 1.3338:

S&R:

S1: 1.3164
S2: 1.3051
S3: 1.3009
R1: 1.3347
R2: 1.3547
R3: 1.3669

Author

Walid Salah El Din

FX Recommends

I have a well-known name specially among the Arabians who are interested in the Forex and CFDs markets. I have had more than 35 T.V interviews and you can watch some of them linked to www.fx-recommends.com home page.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Australia unemployment rate set to edge up within overall strong labor market

The Australian monthly employment report is scheduled for release on Thursday at 00:30 GMT, and market participants anticipate a modest increase in jobs in January. The Australian Bureau of Statistics is expected to announce that the country added 20K new jobs in the month, while the Unemployment Rate is forecast at 4.2%, up from the 4.1% posted in December.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.