Canadian Dollar Struggles Despite Oil Surge

USDCAD – technical overview

Above 1.3000 signals an end to a period of longer-term bearish consolidation and suggests the market is in the process of carving out a more significant longer-term base. Next key resistance now comes in up into the 1.4000 area. Setbacks should be very well supported down into the 1.3000 area.

• R2 1.3847 – 16 April/2024 high – Strong
  
• R1 1.3792 – 11 June high – Medium
  
• S1 1.3615 – 25 June low – Medium
  
• S2 1.3586 – 10 May low – Strong
  

USDCAD – fundamental overview

The Canadian Dollar wasn't impressed at all with a surge in the price of oil, instead getting hit hard on Monday after Stats Canada said growth faded in May. The market has been pushing more towards a Bank of Canada rate cut and this has been weighing on the Canadian Dollar. Key standouts on Tuesday’s calendar come from Eurozone inflation and unemployment, Canada manufacturing PMIs, a Fed Chair Powell speech, and US JOLTs job openings.

Exclusive FX research from LMAX Group Market Strategist, Joel Kruger