The impact of the crude oil’s declines during this week has been felt on the Canadian dollar, which is currently trading lower against the US dollar, plus the fact that there are still risks for Canada’s economy across the board and that includes the Brexit and Federal Reserve’s decisions. Regarding oil, global economy slowdown’s perspectives after Brexit are still weighing on the energy prices, which also have a major impact on CAD pairs and the rest of commodity currencies.
Technical overview for USD/CAD at H4 chart is bullish, as it has been following a bearish trend line from June 23th lows and we can expect an upside target for Loonie towards the 1.3084, but be aware of possible “improvement” on the Trade Balance in Canada that will be released today at 12:30 GMT (-2.9B vs. -2.6B forecast). In the better-than-expected-scenario, the pair can test the support zone of 1.2843 in coming days.
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Origin: FX BAZOOKA
