USD/CAD Daily Price Forecast – USD/CAD Trades Positive on Safe Haven Demand For US Greenback

USD/CAD price is developing well above its moving averages which are positively sloped, a sign that the uptrend could continue and remains in an ascending movement in the short- and long-term time frames. Fresh concerns about the strength of China’s economy emerged late in the week as industrial output and retail sales decelerated. The resulting risk-off sentiment weighed on the Canadian Dollar. Oil prices which enjoyed only a temporary calm also declined today as investors cashed in on previous session’s gains on concerns demand may slump amid slowing economic growth which also added bearish pressure to the commodity linked currency.

Investors Look To US Macro Data For Short Term Opportunities

As of writing this article, USDCAD pair is trading at 1.3389 up by 0.12% on the day. The pair picked up the pace during the early European session and is being supported by a modest US Dollar uptick on the last trading day of the week. An expected Fed rate hike move next week, coupled with the prevalent risk-off mood underpinned the greenback and turned out to be one of the key factors driving the pair higher. With a combination of positive forces lifting the pair back closer to weekly tops, a follow-through positive momentum, led by some technical buying above the 1.3400 handle, now looks a distinct possibility.

Later during the early North-American session key economic indicator updates such as  the US monthly retail sales data, Manufacturing & Services PMI updates and manufacturing & Industrial production data  will now be looked upon for some short-term trading impetus. When looking from technical perspective, momentum indicators are in bullish territory, with the MACD crossing above its red signal line and the RSI fluctuating well above its 50 mark. On a sustained move beyond the 1.3400 handle, the pair is likely to aim towards retesting 18-month tops, around the 1.3445 region. On the flip side, the 1.3360-50 region now seems to act as a strong support, which if broken might turn the pair vulnerable to aim towards challenging the 1.3300 handle.