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

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Walid Salah El Din

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