USD/CAD witnesses pullback to 1.3370 as WTI breaks $65.00

Rally in Canada’s main export item triggered the pair’s pullback.
Data from the US and oil market developments will entertain Loonie traders.

Anil Panchal FXStreet

Although Easter Monday holiday confines major market moves, USD/CAD trades near the intra-day low of 1.3365 as WTI crude oil, Canada’s main export, rose to fresh five-month high.
Friday’s lesser than expected figures of the US housing market indicators could also be considered as a reason for the recent pullback.

During early Monday, the Washington Post came out with a news report claiming that the US will soon announce sanctions to those purchasing crude from Iran in order to cut the nation’s oil exports to zero.

The news propelled WTI crude oil to fresh five-month high of $64.92. The energy benchmark was earlier taking advantage of first in three-week decline in the US oil rig counts, as conveyed by Baker Hughes.

Apart from fundamentals concerning oil prices, the US March month existing home sales could also entertain short-term traders. The housing market indicator is likely to follow recent sluggish data as forecasts suggest a print of 5.30 million versus 5.51 million prior with percentage change likely shrinking to -2.3% from +11.8% earlier readout.

USD/CAD Technical Analysis

A 100-day simple moving average (SMA) at 1.3330 seems nearby important support ahead of dragging the quote 1.3300 and March 19 lows near 1.3250.

Alternatively, the successful break of 1.3400 can question the strength of a downward sloping trend-line stretched since early-March, at 1.3435 now, a break of which may push buyers to 1.3500.

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.

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