- USD/CAD is eyeing a break above the immediate resistance of 1.3640 amid broader strength in the US Dollar.
- Oil prices tumbled after Russian Novak said he expected no new steps from OPEC+ at its meeting on June 4.
- The US Dollar bulls have got strength after climbing above the downward-sloping trendline plotted from 1.3862.
The USD/CAD pair is gathering strength for a break above the immediate resistance of 1.3640 in the early Asian session. The Loonie asset remained in bullish territory amid strength in the US Dollar Index (DXY) and a weakness in the oil price.
Oil prices tumbled after Russian Deputy Prime Minister Alexander Novak said he expected no new steps from OPEC+ at its meeting on June 4. At the press time, the oil price has shown some recovery, however, the downside bias is still solid. It is worth noting that Canada is the leading exporter of oil to the United States and lower oil prices impact the Canadian Dollar significantly.
The US Dollar Index (DXY) has corrected marginally after a solid upside after the White House Communications Director said we are getting closer to a deal on the debt ceiling. Going forward, US Durable Goods orders data (April) will remain in the spotlight.
USD/CAD has shown a stellar upside action after a breakout of the Symmetrical Triangle formed on a four-hour scale. The US Dollar bulls have got strength after climbing above the downward-sloping trendline plotted from March 10 high at 1.3862. The Loonie asset is approaching the previous month’s high at 1.3668.
A range shift move by the Relative Strength Index (RSI) (14) into the 60.00-80.00 territory from the 40.00-60.00 zone indicates that the upside momentum has been triggered.
Investors should wait for a marginal correction to near the immediate support of 1.3610 for a fresh buy, which will deliver gains till the previous month’s high at 1.3668 followed by the round-level resistance at 1.3700.
On the flip side, a break below May 23 high at 1.3550 will drag the asset toward the psychological support at 1.3500. A breakdown below the latter will expose the Loonie asset to April 20 low at 1.3448.
USD/CAD four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD appreciates as US Dollar remains subdued after a softer inflation report
The Australian Dollar steadies following two days of gains on Monday as the US Dollar remains subdued following the Personal Consumption Expenditures Price Index data from the United States released on Friday.
USD/JPY consolidates around 156.50 area; bullish bias remains
USD/JPY holds steady around the mid-156.00s at the start of a new week and for now, seems to have stalled a modest pullback from the 158.00 neighborhood, or over a five-month top touched on Friday. Doubts over when the BoJ could hike rates again and a positive risk tone undermine the safe-haven JPY.
Gold downside bias remains intact while below $2,645
Gold price is looking to extend its recovery from monthly lows into a third day on Monday as buyers hold their grip above the $2,600 mark. However, the further upside appears elusive amid a broad US Dollar bounce and a pause in the decline of US Treasury bond yields.
Week ahead: No festive cheer for the markets after hawkish Fed
US and Japanese data in focus as markets wind down for Christmas. Gold and stocks bruised by Fed, but can the US dollar extend its gains? Risk of volatility amid thin trading and Treasury auctions.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.