USD/CAD ahead of Crude Oil Inventories: Can we expect another selling's wave?
The oil has been on the wires during the last weeks and during yesterday’s session, we saw a decline in the prices per barrel. Today we’ll have a key event at 15:30 GMT with the Crude Oil Inventories from the US. Market’s consensus is calling for an increase of about 0.9M in stockpiles, which is a data higher than the last week’s draw of -7.1M. If data comes in better than expected, CAD should strengthen across the board against its major competitors.
Our technical view for USD/CAD at H1 chart remains bearish as the pair continues to trade below the 200 SMA at H1 chart, as well as below the bearish trend line plotted from December 28th highs. We can expect a strong breakout below the support level of 1.3200 if Oil’s data comes in better-than-expected, with a near-term target around 1.3100, while a weak data or within the expectations should send the Loonie to test the 1.3280 level, which is near to the trend line mentioned above.