USD/CAD Overview – The Pair Breaking Last Day’s Major Resistance

The USD/CAD pair has shown a strong resilience since Thursday Morning’s Opening. Even though the USD/CAD pair saw some selling pressure in the beginning hour, it reversed its trajectory and came back strongly. The pair saw it’s intraday low of 1.3279 before coming up.

The pair failed to keep the gains at its first breakout attempt of crossing major resistance level of 1.3310. The second attempt by the pair seems to be a legit one, and there seems to be a bullish pressure on the USD/CAD pair. As of writing this article, the pair continues to uptrend and is likely to end the day on a positive note.  

On the release front, Two low impact data announcement is lined up at 1230 GMT.  

• Automatic Data Processing, Inc (ADP) is expected to release the national employment change number for February. ADP had measured 35.4K number for the previous month.  
• Statistics Canada is also about to come up with the change in the Wholesale Sales number taken place during January. Analysts are highly bullish on the sales number and expect it to grow by 0.5%. The Wholesale Sales change reported for December was 0.3%.

On Tuesday, the Canadian government forecasted of having higher than the anticipated fiscal deficit of C$19.8 Billion for 2019-20. The government announced that it would be issuing 20% more bonds in 2019-20. This fiscal budget is expected to increase the Gross Domestic Product number by 0.2% for 2019. On Wednesday, the Fed’s monetary policy announcement and the Crude Inventory Reports kept the pair under bearish stance.

Thursday morning saw oil prices were pushed down over the recent news on US-China trade talks. President Trump recently mentioned that the US tariffs might remain in China for a certain period before getting abolished outright. US Crude Oil futures tumbled by 0.3 percent reaching $58.86 per barrel.

The Retail Sales and the Canadian Inflation Report for January and February 2019 respectively will be released on Friday.  

By around 13:31 GMT, the pair was trading at 1.3310 level and sustained between the range of 1.291 and 1.3311 levels.