USD/CAD Price Analysis: Finds support near 1.3500 as Oil price edge down


  • USD/CAD finds cushion near 1.3500 as Oil prices drop on tighter supply concerns.
  • The US Dollar moves higher while risk-sensitive currencies edge down amid uncertainty ahead of US data.
  • The Loonie is expected to blow out of the ascending Triangle formation.

The USD/CAD pair discovers a temporary support near the psychological support of 1.3500 in the European session on Monday. The Loonie asset finds cushion as the Oil prices edge down after a three-day rally.

The appeal for the Oil prices remains buoyant on tighter supply concerns. OPEC pledges to extend production cuts by the June end. Also, Ukraine’s drone attacks on some Russian refineries have deepened supply concerns. It is worth noting that Canada is the leading exporter of oil to the United States and higher Oil prices strengthen the Canadian Dollar.

Meanwhile, the US Dollar rises slightly to 104.58 amid caution ahead of the United States Nonfarm Payrolls (NFP) and related labor market data this week. The market is experiencing asset-specific action as risk-perceived currencies are down while US equity futures have posted significant gains.

In today’s session, investors will focus on the United States ISM Manufacturing PMI data for March, which will be published at 14:00 GMT. The factory data is estimated to increase to 48.4 from 47.8 in February.

USD/CAD seems close to exploding the Ascending Triangle pattern formed on a daily time. The chart pattern exhibits a sharp volatility contraction. The upward-sloping border of the aforementioned pattern is placed from December 27 low at 1.3177 while horizontal resistance is plotted from December 7 high at 1.3620

The 20-day Exponential Moving Average (EMA) near 1.3520 remains stick to spot prices, indicating a consolidation ahead.

The 14-period Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, indicating indecisiveness among investors.

The Loonie asset would observe a fresh upside if it breaks above December 7 high at 1.3620. This will drive the asset towards May 26 high at 1.3655, followed by the round-level resistance of 1.3700.

On the flip side, a downside move below February 22 low at 1.3441 would expose the asset to February 9 low at 1.3413. A breakdown below the latter would extend downside towards January 15 low at 1.3382.

USD/CAD daily chart

USD/CAD

Overview
Today last price 1.354
Today Daily Change -0.0002
Today Daily Change % -0.01
Today daily open 1.3542
 
Trends
Daily SMA20 1.3536
Daily SMA50 1.3508
Daily SMA100 1.3494
Daily SMA200 1.3497
 
Levels
Previous Daily High 1.3562
Previous Daily Low 1.3532
Previous Weekly High 1.3614
Previous Weekly Low 1.3525
Previous Monthly High 1.3614
Previous Monthly Low 1.342
Daily Fibonacci 38.2% 1.3551
Daily Fibonacci 61.8% 1.3544
Daily Pivot Point S1 1.3529
Daily Pivot Point S2 1.3516
Daily Pivot Point S3 1.35
Daily Pivot Point R1 1.3559
Daily Pivot Point R2 1.3575
Daily Pivot Point R3 1.3588

 

 

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