- USD/CAD trades near the 1.3900 zone in a tight range before the weekend
- Contradictory US-China tariff titles and durable oil prices are shaping
- Resistance can be seen 1,3893 and 1.3986, with a support of 1,3855
Its USD/CAD The couple will remain evenly around the 1,3900 zones on Friday, as the markets are considering US-China trade titles and stronger oil prices for a more solid green setback. US Dollar (DXY) trades above 99.60, supported by comments from US President Donald Trump, which recommends chinese talks. However, the Chinese Foreign Ministry quickly challenged these claims, saying that there was no negotiation, causing confusion and limiting the follow-up of the USD/CAD in bullish.
The mood remains fragile as the traders digest the mixed trade signals. Although Trump claimed progress in Beijing's negotiations, China firmly denied ongoing tariff consultations, emphasizing that the US should “stop confusion.” This contradiction has kept appetite Checking, considering US equity futures and hardening DXY recent setback.
Oil prices are a supporting factor in the Canadian dollar. Brent crude oil floats over $ 68 per barrel after growing earlier this week, US sanctions with Iranian oil and announces that China may reduce certain US imported countries. Although the increase in OPEC+ production is expected in May and may, in June, also, according to Commerzbank analysts, their net effects are likely to be limited if the cuts are balanced.
Technical outlook
The USD/CAD blinks the overall bear signal, trades with an apartment near 1.3900 and consolidates from juniper to 1.3846 to 1.3893. The relative strength index (RSI) sits neutral at 36, while the difference in moving medium approach (MACD) shows the sales signal, suggesting downwards.
Hoods are mixed. Stochastic RSI's fast (near 41) and bull bear power (close to 0) refer to indecision, unable to direct prejudice. However, the trendy signals are coarse. 20-day, 100-day and 200-day simple moving meanings are 1,4017, 1,4270 and 1.4009 respectively, lower slope, strengthening a negative tone. Bark tips are also seen in a 10-day mother at 1,3893 and a 10-day SMA at 1,3863.
Support will rest at 1,3855, just above this week's lowest. The pause below would reveal the next 1.3800 and 1.3745. There are 1,3863, 1,3893 resistance from four and in the psychological 1,3986 zones. If the USD strength does not restore the momentum or the oil prices will pull back sharply, the USD/CAD prejudice remains slanted.
