USD/CAD Price forecast: It is maintained below the confluence obstacle of 1.4000 waiting for the US IPP and Powell of the Fed

• The USD/CAD faces new sales on Thursday in the middle of a modest drop of the USD.
• The fall in oil prices seems to weaken to CAD and support the main pair.
• Operators also seem reluctant to the US IPP and the speech of the FED president, Powell.

The USD/CAD torque has difficulty capitalizing on the moderate rebound of the previous day from the level of 1,3900 and attracts new sales during the Asian session on Thursday. However, cash prices lack bassist conviction and are currently negotiated around the 1,3865 area, with a fall of less than 0.10% in the day.

The Alcistas of the US dollar (USD) remain on the sidelines before the US Production Price Index (IPP) and the appearance of the president of the Federal Reserve (FED), Jerome Powell, which, in turn, is considered a key factor that weighs on the USD/CAD torque. However, a new fall in crude oil prices for the second consecutive day weakens the CAD linked to raw materials and acts as a tail wind for the currency pair.

From a technical perspective, the oscillators in the daily chart have begun to gain positive traction and suggest that any subsequent sliding could still be seen as a purchase opportunity near the area of ​​1,3935. This should limit the decline for USD/CAD torque close to the level of 1,3900. However, a convincing rupture below the latter could change the inclination in favor of the bearish operators.

In the context of this week’s failure near the confluence of 1.4000 (comprising the simple mobile average (SMA) of 200 days and the level of fibonacci recoil of 23.6% of the fall from March to May), the USD/CAD pair could weaken towards the 1,3855 region. The downward trajectory could be extended to the level of 1,3800 on a route to the minimum of the year to date, around the 1,3750 area.

On the contrary, a sustained fortress and acceptance above the round figure of 1.4000 could raise the USD/CAD torque beyond the intermediate obstacle of 1,4050, towards the neighborhood of 1,4100. Some continuation purchases would pave the road for a movement towards the level of 1,4100 on a route to the region of 1,4145-1.4150, or the level of 38.2% of Fibonacci.

USD/CAD DAILY GRAPH