USD/CAD: technical view for 05/25/18

The pair is trading near the upper limit of the range 1.2750-1.2900 against the background of correction of prices for crude oil. If oil quotes continue to decline, then the pair may continue local upward movement.
Technical picture:
The price is located above the lower line of the boundaries of the Bollinger bands, below EMA 5 and EMA 13. RSI is above the level of 50% and moves horizontally. Stochastics are neutral. MACD is above the zero mark and is growing. Indicators do not confirm each other.
Trading recommendations:
If the pair overcomes the 1.2900 mark, we should expect its local growth to 1.2970.

Canadian dollar falls from highs due to lower oil prices

The Canadian dollar fell against its US counterpart on Tuesday, as oil rally ended as a result of profit taking by investors, as the market focused on the meeting of the Bank of Canada this week.
Pair USD/CAD rose by 0.30% to 1.3310. On Monday, the pair reached 1.3235, the lowest level since 21 October.
Oil prices fell on Tuesday to 16-month highs after data showed that the OPEC oil production reached in November another record high.
OPEC last week managed to sign an agreement on the limitation of production, which can reduce the excess of reserves of the world, which was followed by a sharp jump in oil prices, the main part of Canada's exports.
The increase in production before the coming into force in January an agreement to reduce production caused concern that the global excess of reserves can continue in 2017.

USD/CAD has won back losses on strong US statistics

The US dollar has won back losses against the Canadian Dollar on Tuesday and is trading at nine-month highs, supported by upbeat US economic data, while the decline in oil prices is putting pressure on the Canadian currency.
In early US trade, the pair USD/CAD rebounded from 1.3489, the session low, to 1.3527, still down by 0.26%.
The pair was likely to receive support at 1.3420, Friday's low, and resistance at 1.3589, Monday's high and a nine-month high level.
Demand for the dollar as a whole is stored on hopes that the presidency of Trump would increase budget spending, will come to tax cuts and a weakening of the financial regulation, which, in turn, will contribute to improving the economic growth and inflation.
The Canadian dollar remained under pressure as oil prices continue to decline amid concerns of oversupply of world reserves.
Canadian dollar is higher against the euro, with EUR/CAD rose by 0.29% to 1.4516.

USD/CAD rebounded from lows and won back losses

On Thursday, the US dollar regained ground against the Canadian dollar after the publication of upbeat data on benefits for unemployment in the US, as well as a disappointing report on the volume of permits for construction in Canada.
In early US trade, the pair USD/CAD rebounded from 1.2851, the session low, to 1.2902, gained 0.10%.
The pair was likely to receive support at 1.2818, Wednesday's low and resistance at 1.2934, the high of September 6th.
US Department of Labor said, that the number of initial applications for unemployment benefits for the week ending September 3 fell by a seasonally adjusted 4,000 to 259,000 from 263,000 the previous week. Analysts had forecast for a decline of 2,000 to 265,000.
However, sentiment on the dollar remained fragile after the release of weak employment data in the United States on last Friday, as the expectations for rate rise by the Federal Reserve have lowered.
Also on Thursday, Canada's Statistics reported that the amount of issued building permits rose by 0.8% in July, while they were expected to grow by 0.3%. In June, the volume of building permits declined by 5.3%, the value was revised from the preliminary 5.5%.
But the commodity "Canadian" was supported against the background of rising oil prices, as market participants expect fresh weekly information on US stockpiles of crude oil and petroleum products.
Canadian fell against the euro, EUR/CAD rose by 0.86% to 1.4608.

CAD - daily note for August 11

The best results after the US dollar today showed the Canadian dollar, unexpectedly and significantly raised in the conditions of strengthening USD. This very remarkable fact is fully explained by the increase in oil prices by 4.5%. Discussions on possible measures to stabilize oil prices caused the increase in commodities, although the talks will take place only at the informal meeting at the end of next month. The probability of changes in production volume is small, but today there weren't no major factors, so even a minimum chance was enough for USD/CAD to fall to its lowest level for the month.

On the foreign exchange market is approaching summer lull

Last week, the JPY crosses have continued to grow, while at the periphery of the market place quite remarkable events are happening, but in general, it seems that the market returned to summer boredom, despite the fact that volatility is still much higher than in 2014.
EUR/USD was in one of the tightest ranges in its history, despite the banking crisis in the European Union and the existential problems that have arisen around Brexit. AUD/USD and USD/CAD also show no signs of life, though AUD/USD is trying to break through the highest level in more than two months.
The market is now busy looking for an equilibrium point for the British currency, which has experienced a shock due to Brexit and traders in pairs with the yen are trying to understand, when the Japanese authorities are going to take the next inevitable step. Given the common symptoms that indicate that the currency returned to average values, it can be assumed that the GBP/USD will develop from the zone 1,3400-1,3500 and JPY crosses will form a top, before continuing the downtrend.

The pair USD/CAD has grown up after the release of US and Canadian data

On Tuesday, the US dollar registered growth against the Canadian supported by the upbeat US reports, while disappointing data on manufacturing sales in Canada put pressure on the local currency.
Pair USD/CAD reached 1.2950 during early US trade, the session high, and subsequently consolidated at 1.2946, gaining 0.42%.
The pair was likely to find support at 1.2768, the low of May 12 and resistance at 1.3014, the high of May 9th.
The dollar found support after the US Commerce Department said that housing starts rose in April by 6.6% to 1.172 million units, compared with expectations of increase to 1.127 million units.