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USD/CAD bounces off a strong support area once again. Is this the start of another short-term rally in the pair?

Intermarket Snapshot

Equity Markets Bond Yields Commodities & Crypto
DAX: 11924.33 +1.44%
FTSE: 7405.75 +0.20%
S&P500: 2877.90 +0.37%
DJIA: 26206.40 +0.10%
US 10-yr 2.508% 20.029
Bund 10-YR 0.00% +0.052
UK 10-YR: 1.069% +0.064
JPN 10-YR: -0.059 +0.012
Oil: 62.59 +0.02%
Gold: 1294.80 -0.05%
Bitcoin: 5025.54 +2.67
Etherium: 169.97 +2.53%

Fresh Market Headlines & Economic data:

Upcoming Potential Catalysts on the Forex Calendar:

  • EIA crude oil inventory at 3:30 pm GMT
  • German factory orders at 7:00 am GMT (Apr. 4)
  • ECB Monetary Policy meeting accounts at 12:30 pm GMT (Apr. 4)

What to Watch: USD/CAD

USD/CAD 1-Hour Forex Chart
USD/CAD 1-Hour Forex Chart

The economic calendar is looking pretty bare for the rest of the Wednesday session, so we’re checking out this mostly technical setup on USD/CAD. On the one hour chart above, we can see that the 1.3300 handle has been a strong area of interest over the past month, once again holding back sellers on the session, even with a broad risk-on lean in today’s global sentiment. Stochastic has already indicated potentially short-term oversold conditions, so its unlikely technical traders are going to try to keep pushing this lower.

The potential for a move higher today comes from the weekly EIA crude oil inventories update coming soon. The bulls should get interested in this technical setup if there is a increase in oil inventories, which could put pressure on oil prices and likely the Canadian dollar. But if there is a drawdown of inventory, that could spark a downside move this pair, at which point the bears should likely watch for a broken support-turned-resistance scenario around 1.3300.