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:
- US and China are reportedly drawing closer to a final trade agreement
- China Caixin services PMI hits 14-month high
- UK services PMI: Business activity declines for the first time in
more than two-and-a-half years - British PM to meet Corbyn Brexit talks
- Strong services PMI spotlights a tale of two German economies
- Volume of retail trade up by 0.4% in both euro area and EU28
- Japan prepares to ease merger rules as regional banks struggle
- Australian retail sales soar
- Australia’s trade surplus surged to AUD 4.80B Feb. from a downwardly revised of AUD 4.35B in Jan.
- Australian Services Index rose by 0.3 points to 44.8 points
in March 2019 (seasonally adjusted) - The ANZ World Commodity Price Index pushed up 1.4% m/m in March
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
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 it’s 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 an 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 in this pair, at which point the bears should likely watch for a broken support-turned-resistance scenario around 1.3300.
