Canadian Dollar Lifted by Crude Oil Bounce. Will USD/CAD Go Higher?

Canadian Dollar Lifted by Crude Oil Bounce. Will USD/CAD Go Higher?

Canadian Dollar, USD/CAD, Crude Oil, OPEC+, AUD, GBP, EUR – Talking Points

The Canadian Dollar has found support after the North American close as crude oil gained some ground in the aftermath of comments from OPEC+ and Saudi Arabia.

The WTI futures contract is near US$ 91 bbl while the Brent one is above US$ 97.

The commentary came from OPEC+ Secretary General Haitham Al-Ghais and Saudi Arabian Energy Minister Prince Abdulaziz bin Salman. The remarks essentially re-iterated that oil production could be reduced if it was deemed necessary.

While crude oil boosted the Loonie, the Aussie and Kiwi Dollars enjoyed some tailwinds from other commodities finding higher levels.

The Euro and Sterling remain under pressure with much higher natural gas prices creating headaches as autumn comes into view. The Euro continues to languish at 20-years lows under 0.9950.

Negative sentiment toward the British Pound is being exasperated by a strike at the port of Felixstowe, the UK’s busiest container terminal.

Gold and silver steadied in the Asian session after six straight days of losses, trading around US$ 1,738.

The bloodbath on Wall Street led APAC equity indices into a sea of red. While European indices are headed to a tough day, US futures are pointing to a stable start to their cash session.

The risk off tone in stock markets saw US Dollar buying and Treasury yields are flat on the day so far, maintaining the uplift from the US session.

All eyes are on the Jackson Hole symposium that starts on Thursday.

After a multitude of European PMIs, the US will see their PMI as well as new home sales data and consumer confidence figures.

The full economic calendar can be viewed here.

USD/CAD Technical Analysis

USD/CAD stalled below break point resistance in the 1.3077 – 1.3084 area overnight, making a high of 1.3061. These levels may continue to offer resistance.

Nearby support may lie at 1.2895 – 1.2910 area, with the 10-, 21- and 34-day simple moving average (SMA), all converging in that zone.

Further down, support could be around 1.2720 with this month’s low and some break points near that level.

Chart created in TradingView

— Written by Daniel McCarthy, Strategist for

To contact Daniel, use the comments section below or @DanMcCathyFX on Twitter

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