USDCAD Retreat As Crude Oil Price Rebounds

USDCAD retreat today after yesterday’s sharp gains as the risk-off sentiment returns to markets. The Canadian dollar was under severe selling pressure yesterday amid the sell-off in equities and crude oil price. Crude oil, Canada’s main export product, lost over 6% yesterday at dropped to 34.50 per barrel.

On the economic data from the USA, the Export Price Index came in at 0.5%, below the forecasts of 0.6% in May, the yearly reading came to -6% from previous -7%. The Import Price Index reported at 1% beating the expectations of 0.6% in May; the annual reading came in at one above the expectations of -9.3%.

In Canada, the Capacity Utilization registered in at 79.8%, below the consensus of 80% in the first quarter.

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USDCAD Price Levels to Watch     

The USDCAD is 0.52% lower at 1.3557 as the pair gives up some of yesterday’s sharp gains. The pair provided yesterday some signs of life as it managed to break above the 200-day moving average. The technical picture is bullish for the short term as long as the price hovers above the 200-day moving average.  

On the downside, immediate support for USDCAD stands at 1.3527 the daily low. If the pair breaks below 1.3527, the next support will be met at 1.3468 the 200-day moving average. The next target for USDCAD bears is at 1.3314 the low from June 10. 

On the contrary, the first resistance for USDCAD stands at 1.3666 the daily top. If the USDCAD breaks higher, the next obstacle will be met at 1.3757 the 100-day moving average. In case the bulls continue to bid, the next resistance stands at 1.3828 the high from May 29. 

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