USD/CAD: Another bounce off 21-day EMA as WTI refrains from extending latest recovery
- WTI pullback, trade pessimism weigh on the USD/CAD pair.
- Canadian employment data also contributed to the quote’s strength.
Having registered one more U-turn from 21-day EMA, USD/CAD takes the bids to 1.3220 during early Monday.
Among many other reasons like WTI pullback and Friday’s downbeat jobs report from Canada, doubts over the US-China September month trade negotiations have recently been troubling traders of the commodity-linked currencies like the Canadian Dollar (CAD).
On Friday, the Loonie failed to portray the market impact of the unexpected increase in Unemployment Rate and slump in Employment Change figures from Canada. The reason could be WTI rise that took hints from declining inventories at Europe and the Bloomberg news that Saudi Arabia is trying to balance the oil market.
In a case of the US-China trade stalemate, the US kept increasing hardships for China’s Huawei to exert pressure on the dragon nation to accept their deal while meeting on a negotiation table in September. However, China refrains from respecting any such push and retaliates silently.
Moving on, investors will seek fresh clues concerning the trade aspect of the US and China for near-term direction as economic calendar remains short for the day.
Technical Analysis
21-day exponential moving average (EMA) level near 1.3193 holds the gate for the quote’s decline to 1.3150/45 support-zone including early-July highs. On the contrary, June 10 low near 1.3242, 1.3300 and current month top surrounding 1.3345 seem nearby key resistances.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
