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Trading Outlook – USD/CAD

Jarratt Davis
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Originally updated: 07:45

Trading Bias: LONG

Currency pair: USD/CAD

Current Sentiment: Bullish

In today’s trading session we will be focussing on buying opportunities on the USD/CAD.

Fundamentals:

Toady we can look at focusing on USDCAD as Oil continues to fall lower  - this comes after comments from Saudi Oil Minister Naimi who said the country is pumping crude near a record pace and signalled that OPEC is prepared to wait out the slump in oil prices. The USD sold off in Friday’s session for no fundamental reason, so we expect the USD to remain supported over the session and regain some ground against it’s major peers.

Technicals:

We expect this pair to rally during today’s session.

There is strong support at 1.2550 – 1.2540 which could provide trading opportunities should the price pull back. Look for the price to bounce off this level if it retraces back to it.

Remember to be aware of intra-day news as this can very often change the sentiment which makes our trade weaker. Look for any news that could be negative for this pair, which would change the sentiment to bearish.

Other Market Moving News:

Relatively quiet overnight session with the NZD  being the main gainer as NZ Westpac Consumer Confidence came in better than expected, which has suggested that the RBNZ will remain on hold with rates for now.

Today’s calendar remains light, with the main highlight coming in the form of ECB President Draghi – he is due to give a speech at 2pm London time and it’s worth keeping an eye on for any potential market moving announcements.

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