USDCAD Rising on Crude Oil Weakness

USDCAD continues to rise through the mid-European session and is currently trading close to the 1.3462 level.

Today, the price added to its gains following yesterday’s reversal from the key support level at 1.3380, and yesterday’s formation of a clearly defined daily Japanese candlestick “Hammer” pattern.

The US Dollar remains supported by the latest FOMC meeting minutes, which lowered prospects for interest rate cuts in 2019. This, coupled with a strong weakness in Crude Oil prices, added further bearish pressure on CAD and led to the rise of the USDCAD pair.

On the technical side – the aforementioned Hammer formed in the proximity of the strong support area at the intersection of the support trendline of the daily up channel from February and the lower daily Bollinger Band. Today’s bullish move hints of further gains in the days ahead towards the multi-pivot high from April at 1.3500.

USDCAD Daily Chart