USDCAD Trades Higher but Mood is still Bearish
USDCAD started the daily higher adding 20 pips to 1.3283 as the recent retreat in crude oil prices Canada’s main export item seems to have added further weakness in the Canadian Dollar (CAD). The loonie boosted previous week by increased speculation about interest rates cut from FED. Meanwhile President Trump said that other currencies are undervalued against the USD and also complained that the Fed was keeping interest rates way too high. Today we are waiting the US Consumer Price Index (CPI) data for the month of May scheduled at 12:30GMT that will affect the USDCAD intraday price.
USDCAD picture is negative as the pair is trading below the 50 and 100 day moving averages, so it is wise not to enter any long positions now. The short term picture has somehow improved as the pair crossed above the 20 and 50 hour moving averages. Strong support for the pair stands at 1.3238 the recent low while a break below can lead prices down to 1.32 round figure. On the upside immediate resistance stands at 1.3305 the 100 hour moving average and then at the 50 day moving average at 1.3413.