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...
USD/CAD: best pair to trade this Friday
2020-12-07 • Updated
So many factors have recently appeared on the market which should definitely impact USD/CAD. First of all, the important economic releases will be out soon from both Canada and the USA. The Canadian labor data in combination with the US NFP report will be published at 15:30 MT time. No doubt that the main driver of the pair will be NFP, but take into consideration the Canadian data as well.
Elsewhere, OPEC+ decision to prolong oil output cuts moved oil prices upwards. As a result, the resurgence of crude oil impacted positively the commodity-sensitive loonie as Canada is one of the world’s largest oil exporters.
Technical tips
The pair is trading in a downtrend, and the moving averages moving in descending order just confirm it. Looking at the last candlesticks, we may notice a lot of indecision. The price is stuck between 1.2850 and 1.2875. However, it’s just the calm before the storm. Upcoming economic reports will shake this pair definitely. The positive Canadian data and the negative US data will drive the pair down. Otherwise – up. If USD/CAD jumps above the top of this range, it may surge to the key psychological mark of 1.2900. Support levels are at 1.2850 and 1.2820. Follow the releases and catch the market flow!
Similar
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Bearish Scenario: Sales below 78.99 with TP1: 77.93, TP2: 77.45, and upon its breakout TP3: 76.56 and TP4: 75.70 Bullish Scenario: Purchases above 78.00 (wait for a pullback to this area) with TP1: 1679.00 (uncovered POC*), TP2: 79.33, and TP3: 79.66 intraday
Latest news
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...