Yesterday’s trade saw USD/CAD within the range of 1.2513-1.2563. The pair closed at 1.2531, edging down 0.17% on a daily basis. It has been the 43rd drop in the past 85 trading days. The daily low has been a higher-low test of the 10-month low registered on April 29th. In weekly terms, USD/CAD lost 0.92% of its value during the past week. It has been the 14th drop in the past 17 weeks. The major pair has depreciated 0.51% so far during the current month, following three consecutive months of decline. In April it went down 3.48%.
At 6:50 GMT today USD/CAD was losing 0.38% on the day to trade at 1.2484. The pair touched a daily high at 1.2538 during the early phase of the Asian trading session, overshooting the daily R1 level, and a daily low at 1.2477 at 6:18 GMT. The latter has been the lowest level since July 1st, when a low of 1.2471 was registered.
The loonie traded in proximity to 10-month highs, as crude oil futures remained close to 6-month highs on Monday. May 2nd marked the 44th drop in oil prices out of the past 96 trading days. Oil futures for June delivery went up as high as $46.15 per barrel on May 2nd, and closed at $44.72, losing 2.63% compared to Friday’s close. As of 6:45 GMT today the commodity was gaining 1.12% to trade at $45.22, after going up as high as $45.24 per barrel earlier.
On Tuesday USD/CAD trading may be influenced by the following events as listed below.
Fundamentals
United States
Feds Lockhart statement
At 23:00 GMT the Federal Reserve President for Atlanta, Dennis Lockhart, is expected to take a statement. His remarks may lead to a moderate volatility of the currency pairs containing the US Dollar.
Canada
BoC Governor Poloz statement
At 16:30 GMT Bank of Canada Governor, Stephen Poloz, is expected to take a statement. A moderate-to-high volatility of the currency pairs containing the loonie is usually present during his speeches.
Daily and Weekly Pivot Levels
By employing the Camarilla calculation method, the daily pivot levels for USD/CAD are presented as follows:
R1 – 1.2536
R2 – 1.2540
R3 (range resistance) – 1.2545
R4 (range breakout) – 1.2559
S1 – 1.2526
S2 – 1.2522
S3 (range support) – 1.2517
S4 (range breakout) – 1.2504
By using the traditional method of calculation, the weekly pivot levels for USD/CAD are presented as follows:
Central Pivot Point – 1.2589
R1 – 1.2682
R2 – 1.2812
R3 – 1.2905
S1 – 1.2459
S2 – 1.2366
S3 – 1.2236
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