USDCAD Analysis – June 6, 2018

The private Oil data yesterday showed an unexpected draw in inventories of -2.028M and we await data this afternoon to support that view. There is also Canadian Trade, Building Permits and PMI data being released today. USDCAD advanced to trend line resistance yesterday where sellers forced price down creating a pin bar on the 4 hour chart. Price is currently trading around 1.29500 and resistance is clearly defined at 1.30000 and the 1.30600 area. A break above this zone would target 1.31000 followed by 1.32200.

There were reports out yesterday that US Treasury Secretary Mnuchin urged President Trump to exempt Canada from the Steel and Aluminium tariffs which also added to the moves in the pair. A continuation of the downward move needs to break under 1.29200 followed by the 100 period MA at 1.29068 and clear 1.28940 in order to keep the pressure on longs. There is the 200 period MA at 1.28700 which is supporting price at 1.28641 but really the 1.28363 level is needed to see a move down to test 1.27777 followed by 1.27243.