2020-07-23 • Updated
The pair fell down on the weak US dollar and the positive Canadian data. What is the forecast?
Yesterday the consumer price index came out better than expected. It rose by 0.8%, while the forecast was only 0.4%. USD/CAD slumped after the report to the 5-week low at 1.3400. At the same time, the weak US dollar added to the pair falling. In fact, the US dollar was waning on the risk-on sentiment, and it got an extra headwind from fears that democrats and republicans wouldn’t be able to agree on the fiscal stimulus package in a short time. In addition, the US existing home sales turned out worse than analysts expected. They rose by 4.72 million the last month, while the forecast was 4.77 million. Also, today the USA published jobless claims. Analysts expected that the numbers will stay at the same level as the previous time – 1.3 million. However, unemployment claims rose by 1.4 million and weighed on the US dollar.
The pair had been trading in a horizontal range between 1.3685 and 1.3500 during almost two weeks already. And, finally, USD/CAD escaped it, breaking down the 200-day moving average. As a rule, the price should fall by the same height as the range itself. The pair has already crossed the 1.3425 level and continues moving down. If the pair crosses the low of June 8 at 1.3380, it will plummet to the next support at 1.3320.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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