USD/CAD Stalls At Daily Moving Average

For the fourth time in four sessions, the USD/CAD has traded in a rotational pattern near the 1.3150 level. Sentiment toward the Loonie is split, with seasonally strong WTI oil prices propping up valuations. Given that December WTI crude is trading above $57.00 per barrel, there is a bit more optimism than usual surrounding the USD/CAD.

In contrast to the robust oil valuations, today’s economic calendar brought the release of September’s Canadian trade balance figures. Both Imports and Exports fell month-over-month, creating a net loss of $-0.98 billion. However, there is media buzz out of the U.S. House of Representatives that a vote on USMCA may be coming sooner rather than later. Given the House’s current stance toward impeachment and a general disdain for the Trump administration, USMCA getting ratified ahead of the 2020 elections is likely a longshot.

USD/CAD Bounces From Daily SMA

Today has brought whipsaw action to the Loonie and a bounce from a key area of downside support. Earlier, rates put in a hard test of the Daily SMA at 1.3114 before reversing course. The Daily SMA is an important technical level, as this market appears poised to close the trading day in short-term bullish territory.

Here are the key levels to watch for the Loonie as we roll into this week’s inventory cycle:

• Resistance(1): Bollinger MP, 1.3182
• Support(1): Daily SMA, 1.3111

Overview: As they are every week, the Tuesday/Wednesday sessions appear ready to drive participation to the USD/CAD. Both the API and EIA stocks numbers are expected to stay in the positive in concert with fall seasonality. In the event that they do, be on the lookout for today’s gains to be extended and WTI prices to gravitate back toward the $55.00 handle.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

Related Articles

AUD/USD Rises on Tariff Talks—Triangle Squeeze Looms

17 hours ago

Save

USOIL Breakout? WTI Crude Oil Eyes $64.80 Resistance

22 hours ago

Save

GBP/USD Holds $1.3244 as BoE Eyes 3 Cuts—Breakout Soon?

22 hours ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments