On Tuesday, the bullish momentum of the U.S. dollar slowed down as President Trump revealed that sanctions could be reinstated against Iran. The economic calendar is pretty light today as European banks will be closed in observance of Liberation Day. So, are you ready to trade some technical setups? I hope you are, as these setups are too good to miss…

Watchlist – Key Economic Events Today

Canadian Dollar – CAD

BOC Governor Poloz is due to testify along with senior deputy governor Carolyn Wilkins before the Standing Senate Committee on banking, trade, and commerce, in Ottawa at 20:15 (GMT). Investors will be looking for any remarks about their upcoming policy to support the Canadian trade and commercial activities. Volatility is expected during the speech.

U.S. Dollar – USD

Crude Oil Inventories – At 14:30 (GMT), the Energy Information Administration is expected to release inventory figures with a forecast of -1.6M vs. -1.1M. On Tuesday, the API (American Petroleum Institute) reported a build of 1.099m barrels vs a previous draw of 1.047m. Fellows, as we know, there’s a positive correlation between both figures and the negative data is causing a drop in the price of crude oil. Today, crude oil is likely to decline.

USD/CAD – Descending Triangle Breakout

During the Asian session, the USD/CAD continued to trade sideways, above a strong support level of $1.2810. The commodity currency, the Loonie, has weakened because of the sliding oil price. Moreover, the pair has come out of the descending triangle pattern and it’s likely to continue trading bullish above $1.2815 today.

USD/CAD – 4-Hour Chart

What makes this level ($1.2815) interesting, is that the RSI and Stochastics indicators are lining up with the bullish setup. So the thing is, the bears might be losing their momentum.

USD/CAD – Key Trading Levels

Support     Resistance

1.2814    1.285

1.2802    1.2862

1.2784    1.288

Key Trading Level:    1.2832

USD/CAD – Trading Plan

You could go long above $1.2815 to target 1.2915. But if you want to wait for the EIA inventories report, fair enough. A draw in inventories typically makes the Loonie stronger. Good luck and have an awesome day!