Just two hours before important for oil price Energy Information Data, strong correlated with this commodity USDCAD is testing local support at 1.3150. Will bulls find strength to create new high?
The answer for this question is difficult because a lot of depends on the EIA report. Market expectations say about solid gain of US inventory: +2.53M barrels. This value is still lower than last week’s 6.46M barrels. Lower value will be positive signal for the oil price and it will make USDCAD lower.
On the other side, for two days we can see strong oversold of oil and price of commodity is getting close to support breached lately. In connection with slightly worse data about inventories, CAD can decrease further.
Trade with others. Join eToro community and use experience of other traders!
CAD weakening and USD strengthening should cause rebound of USDCAD from marked support area at 1.3150. Bullish view is supported also by vicinity of 8-period MA.
However if macro data will favour CAD, then after last test of breached support from below there will be possibility to join bears.
