USDCAD trading with an upward skew amidst an upbeat USD and rising oil prices that threaten to curb increases.
Highlights
The USDCAD finds substantial momentum for the 2nd day in a row, but with limited follow-up.
Lower odds that the June US Fed rate drop propel the US dollar to a several-week high and provide stability.
Upbeat prices for crude oil appear to support the CAD while acting as a challenge facing the duo.
The market Snapshot
On Tuesday, the USDCAD unit draws a few buyers over two days in succession. Looking to consolidate on the nighttime rebound off the 1.3515 area. Which is more than a week’s bottom. Spot rates are now trading at 1.3580 mark and are being aided by specific follow-up US dollar purchasing. While rising costs of crude oil may limit any further upside.
USDCAD Fundamental Overview
The US DXY has risen to the greatest value as of February 14th. Through – if US Fed would lower the benchmark rate multiple times this year. Traders reduced their expectations on a June US Fed rate decrease after the publication of positive US indicators. That suggested manufacturing activity expanded during March first the initial rise since Sept of 2022. This supports rising U.S. government note rates, that operate both a positive force to the dollar and its USDCAD pairing.
Aside from that, the risk factor urge appears to be a further factor benefiting the secure haven of the USD. At this point, oil prices remain at a 5-month top reached on Monday. Despite signals of increasing demand and the prospect of a further rise of hostilities in the Gaza region. Such is viewed underlying the commodity-specific CAD, that may deter investors from putting new bull wagers. Despite about a technical point of view, the current inability to obtain approval over the 1.3600 threshold raise a few questions.
What’s Next?
Market players are starting to look towards the U.S. economic calendar. Which includes the publication of JOLTS job vacancies and The factory bookings today in the US trading. Which together with remarks from important FOMC participants, American treasury rates, and wider riskier attitudes. That might increase $ desire and give some support for the USDCAD cross. Investors will use fluctuations in oil prices to identify immediate bargains.
Daily Technical Indicators & Signals
| Name | Value | Action |
| RSI(14) | 56.495 | Buy |
| STOCH(9,6) | 58.726 | Buy |
| STOCHRSI(14) | 71.678 | Buy |
| MACD(12,26) | 0.002 | Buy |
| ADX(14) | 18.797 | Neutral |
| Williams %R | -20.872 | Buy |
| Name | Value | Action |
| CCI(14) | 84.9494 | Buy |
| ATR(14) | 0.0060 | Less Volatility |
| Highs/Lows(14) | 0.0000 | Neutral |
| Ultimate Oscillator | 41.195 | Sell |
| ROC | 0.369 | Buy |
| Bull/Bear Power(13) | 0.0053 | Buy |
US Dollar Index – (DXY) Time Frame Indicators
| Name | Type | 5 Minutes | 15 Minutes | Hourly | Daily |
| Dollar Index
104.790 |
Moving Averages: | Neutral | Buy | Strong Buy | Strong Buy |
| Indicators: | Sell | Buy | Strong Buy | Strong Buy | |
| Summary: | Neutral | Buy | Strong Buy | Strong Buy |
