USD/CAD losing the grip near 1.3120, eyes on US ISM

Pablo Piovano FXStreet

The Canadian dollar is posting meagre gains vs. its neighbor on Monday, sending USD/CAD to the 1.3120/15 band for the time being.

USD/CAD attention to oil, ISM

The pair manages to keep the trade above the 1.3100 handle so far, against the backdrop of a mild bias favouring the greenback and crude oil prices trading slightly in the red territory.

The barrel of West Texas Intermediate remains in the upper end of the recent range, meandering around the $48.00 mark and following last week’s data, which showed inventories decreasing by more than 1.8 million barrels and oil rigs count up by seven to 425.

Ahead in the session, RBC’s Manufacturing PMI is only due in Canada, while ISM Manufacturing and Markit’s PMI are expected in the US docket.

Regarding positioning, speculative money has taken CAD back to the net short area for the first time since March 29, while Open Interest are at their lowest levels since that time.

USD/CAD significant levels

As of writing the pair is losing 0.05% at 1.3120 facing the next support at 1.3059 (55-day sma) followed by 1.2996 (low Sep.22) and then 1.2818 (low Sep.7). On the other hand, a break above 1.3276 (high Sep.27) would open the door to 1.3311 (38.2% Fibo of the 2016 drop) and finally 1.3575 (50% Fibo of the 2016 drop).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.3024

29% Bullish
57% Bearish
14% Sideways

Bias Bearish

1 Month

Avg Forecast 1.3171

33% Bullish
33% Bearish
33% Sideways

Bias Bullish

1 Quarter

Avg Forecast 1.3250

60% Bullish
30% Bearish
10% Sideways

Bias Bullish

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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