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Bulls Looms Over 1.3710 - Break Will Bring Buying In USD/CAD!


The USD/CAD was closed at 1.36623 after placing a high of 1.37050 and a low of 1.36466. Overall the movement of USD/CAD remained bearish throughout the day. The USD/CAD pair showed almost smooth flow throughout the day and struggled to maintain its four days bullish streak on Monday but failed and ended its day with a bearish candle.

At 17:30 GMT, the Building Permits from Canada for May increased to 20.2% against the forecasted 10.3% and supported the Canadian dollar. The Industrial Product Price Index (IPPI) was dropped to 1.2% against the forecasted 2.7% and weighed on the Canadian dollar. The Raw material Price Index fell to 16.4% from the forecasted 29.7% in May and weighed on the Canadian dollar.

At 19:00 GM, the Pending Home Sales for May from the United States came in as 44.3% against the forecasted 18.9% and supported Us dollar.
The poor than expected data from Canada and reliable data from the US gave a push to USD/CAD prices on Monday in the earlier session. However, the prices retreated in late, sitting on the back of rising crude oil prices.

WTI Crude oil rose to $39.86 per barrel on Monday on the back of increased risk sentiment amid bullish data from across Asia and Europe that raised the hopes about a sharp rise in economic recovery. But some investors remained cautious due to the increased number of coronavirus infections around the world. The rising crude oil prices gave strength to commodity-linked Loonie on Monday, which undermined the USD/CAD pair gains and turned them into losses.

Daily Technical Levels:
Support Resistance
1.3634 1.3696
1.3608 1.3732
1.3572 1.3758
Pivot point: 1.3670

On Tuesday, the commodity currency pair USD/CAD seems to exhibit bullish bais, especially after violating the downward trendline resistance level of 1.3550. On the higher side, we may see Canadian dollar soaring until the level of 1.3688, which also marks a double top level. Above 1.3688, the next resistance level can be found around 1.3795, while support holds around 1.3550. Let's look for buying trades in USD/CAD to target 1.3793 in days ahead. Good luck!

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