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The Canadian Dollar Finds Support as Crude Oil Corrects 1% Overnight

CAD - Canadian Dollar

The Canadian Dollar looks to finish the week well entrenched in this months trend channel of 1.3377 - 1.3512 currently trading at 1.3446 the 20-day moving average for the USDCAD pair. Crude Oil is staging a 1% correction after WTI posted its worse week of the year yesterday with a 6% slide in the price due to trade tensions and higher inventories in the US. The North American market should be quite today as the US heads into a long weekend with Memorial Day on Monday.

From a technical perspective, the USDCAD pair is currently trading at the 20 DMA of 1.3446. We see first support at 1.3422(0.7450) and second at the psychological handle of 1.3400, followed by third support of 1.3377(0.7475). Resistance for the pair is seen at 1.3468(0.7425), 1.3490 and 1.3513 (0.7400).

Key Movers

The US Dollar was the primary mover overnight as a risk-off rally in markets saw the greenback dip against all G10 currencies. The US Dollar Index (DXY) pulled back from intraday highs of 98.37 to 97.74 on early morning trading as the ongoing trade war between the United States and China battles on. Stagnating Manufacturing and Service PMI figures in the United States did no favors to the worlds most traded currency as the US private sector output fell to a three year low in May.

Investors turn their attention to the European markets as polls close across the continent for the 2019 European elections. Expectations that the EUR/USD cross could see more volatility over the coming days. With elections occurring once every five years, it is anticipated that the rise of Eurosceptic parties could gain over 1/3 of all votes as social unrest is seen within the Eurozone.

Expected Ranges

USD/CAD: 1.3490 - 1.3422 ▼

EUR/CAD: 1.5088 - 1.5035 ▼

GBP/CAD: 1.7014 - 1.7106 ▼

AUD/CAD: 0.9265 - 0.9303 ▲

CAD/NZD: 1.1339 - 1.1379 ▼

EUR/USD: 1.1177 - 1.1205 ▲