The Canadian Dollar Looks Strong Ahead Of Crude Oil Inventories Data

• 22 Nov 2017

USD/CAD

The USD/CAD pair has been stuck in the 1.262- 1.288 trading range for the last month. The 1.276 price level appears to be a key support level, having once represented a resistance line. Price action has been bouncing around this price area and is again testing with a potential bearish break. The pair is also approaching the 20-period EMA which has acted as a support level for the pair. Clearly, a break if these two support levels would be significant in a bearish move. Momentum indicators have downward trajectories which appears to support bearish sentiment.

Impact event: Crude Oil Inventories data will be released at 17:30 GMT+2 and will impact CAD pairs.

EUR/CAD

Heavy selling pressure in the EUR/CAD has yet to result in a break of the 1.499 price level despite five consecutive trading sessions testing the price level. RSI has flattened just below the zero line and MACD indicates that the bullish move is also beginning to flatten. Volume is declining which may indicate little conviction from sellers to drive prices lower.

AUD/CAD

The AUD/CAD could be on the verge of a bullish reversal. A doji candle followed by and inverted hammer candle at the bottom of the market, could signal the pair is amidst a trend reversal. Further, RSI has reached the 30 oversold zone which may also signal a potential reversal. volume has been increasing which indicates plenty of interest in the pair.

GBP/CAD

Two major macroeconomic events later in the day may be enough to push the GBP/CAD pair out of the 1.674- 1.710 trading range. Firstly, the UK Budget announcement which will provide an insight into the U.K.’s future public finances and secondly, the Crude Oil inventories report. Currently, momentum indicators appear to be neutral if slightly bullish and despite five consecutive bullish candles, yesterday’s trading session saw the Pound weaken against the Canadian dollar.