CAD – Oil Price Decline Pressures Canadian Dollar

The USD/CAD pair hovered around 1.36 on Wednesday. A temporary easing of tensions in the Middle East and a decline in oil prices weakened support for the Canadian dollar, limiting its downside. Although sporadic clashes continue between the U.S. and Iran, the market generally interprets this as a de-escalation. Technically, the RSI and Stochastic Oscillator have rebounded from oversold territory. The 50-day moving average at 1.3730 will be a key resistance level. A break above this level would likely solidify the USD/CAD's upward trend. Subsequent resistance levels to watch are 1.3790 and 1.39, with key levels remaining at 1.3950/1.40. Near-term support is at 1.3550, with key support at 1.35 and 1.3380, and the next level at 1.33.

Forecasted range:
Resistance: 1.3730* - 1.3790 - 1.3900 - 1.3950/1.4000
Support: 1.3550 – 1.3500 – 1.3380 – 1.3300

This Week's News Highlights:
5/5 Canada's March exports totaled $72.77 billion, imports totaled $70.99 billion.
Canada's March trade balance showed a surplus of $1.78 billion.

6/5 Canada's April PMI was 61.5
Canada's April seasonally adjusted PMI was 57.7

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