Market News & Analysis

Top Story

Crude oil crash hurts the CAD

Crude oil crash hurts the CAD

The Canadian dollar was under pressure against all of its major pairs on Monday as crude oil futures expiring in May plunged below Zero for the first time in history. The Energy sector accounts for approximately 16% of Canada's benchmark index the S&P/TSX composite index. On Tuesday, U.S. Existing Homes Sales for March are expected to decline to 5.25 million homes on month, from 5.77 million homes in February. In Canada, traders anticipating retail sales to increase 0.2% on month in Feb compared to a gain of 0.4% in Jan. A higher reading than expected is considered positive for both currencies so traders should be prepared for a potentially volatile trading session on Tuesday. 

What are the technical's indicating? 

On a 30 minute chart, the USD/CAD pair is forming a rounding base pattern. Price action broke above mid-day highs late in the trading day as Crude marked new lows on the day. Look for a possible test of the April 16 high at 1.418 as long as the pair remains above 1.4075 support.



Source:  Tradingview, GAIN capital


Happy Trading
Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.