USDCAD Selling Pressure Accelerates Below The 50-Day SMA As Crude Oil Extends Gains

USDCAD extends losses for the second day after yesterday’s sharp losses that breached the 50-day moving average. Canadian Loonie gets a hand from higher crude oil prices as the WTI crude oil price managed to reverse early losses and turned higher for the fifth consecutive day ahead of the June futures expiration later today.

On the economic data, the United States Housing Starts plunged -30.2% in April; the previous reading was at -22.3%. The Building Permits Change came down to -20.8% in April from -6.8% in March. The U.S. Redbook Index dipped to -2.6% on May 15 from previous -1.5%. The yearly Redbook Index dipped from previous -7.5% to -9.5%.

Investors await the Fed Chairman Powell and Treasury Secretary Mnuchin testimony before the Senate Banking Committee. The Committee members are expected to question Powell and Mnuchin about further actions still needed to keep the U.S. economy afloat.

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USDCAD Price Technical Analysis

The USDCAD is 0.37% lower at 1.3883, making fresh three week lows amid USD weakness across the board. The pair has cancelled the bullish momentum at least for the short term as yesterday breached below the 50-day moving average. 

On the downside, first support for USDCAD stands at 1.3880 the daily low. If the pair breaks below 1.3880, the next support will be met at 1.3847 the low from April 30 trading session. Next level to watch on the downside for USDCAD is at 1.3726 the low from March 16 trading session.  

On the other hand, the initial resistance for USDCAD stands at 1.3969 the daily top. If the USDCAD pair breaks higher, the next hurdle will be met at 1.4078 the 50-day moving average. In case the bullish momentum persists, the next resistance stands at 1.4141 the high from May 14. 

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