- USD/CAD trades near the zone 1.3900 in a tight range before the weekend
- Contradictory headers of the US-China tariffs and resistant oil prices shape sentiments
- The resistance is perceptible at 1.3893 and 1.3986, with support of 1.3855
The USD/CAD pair stays on Friday in the 1.3900 zone, because the markets weigh fresh trade headlines of the USA-china and stronger oil prices in relation to a stronger bonfire. The American dollar index (DXY) trads higher near 99.60, supported by the comments of US President Donald Trump suggesting that talks with China are underway. However, these claims were quickly questioned by the Chinese Ministry of Foreign Affairs, which stated that there were no negotiations, creating confusion and limiting the stubborn consequences in USD/CAD.
The mood remains breakable because traders digest mixed trade signals. While Trump found progress in negotiations with Beijing, China strongly denied constant tariff consultations, emphasizing that the US should “stop causing confusion.” This contradiction maintained an appetite under control, considering American Futures from own capital and calming the recent reflection of DXY.
Oil prices remain a supporting factor for the Canadian dollar. Brent oil rollers above USD 68 for a barrel after the growing this week, under the influence of American sanctions in the Iranian oil oil and reports that China may reduce some import tariffs in the USA. While the boost in OPEC+ production is expected in May and perhaps June, their net effect will probably remain constrained if it is compensated by compensatory cuts, according to Commerzbank analysts.
Technical perspectives
USD/CAD flashes the general bear signal, trading flat near 1.3900 and consolidating in the end -held range from 1.3846 to 1.3893. The relative force indicator (RSI) is neutral at 36, while the average mobility of convergence (MacD) shows a sales signal, indicating down pressure.
The shoot indicators are mixed. Both the stochastic RSI (nearly 41) and the power of the bull (nearly 0) suggest indecision without confirming the directional bias. However, the signals related to trends remain bear. 20-day, 100-day and 200-day straight movable average at 1.4017, 1.4270 and 1,4009, respectively, all slopes lower, strengthening the negative tone. Bears are also perceptible in an EMA 10-day EMA at 1.3893 and 10-day SMA at 1.3863.
The support is 1.3855, slightly above low this week. The following break would reveal 1,3800 and 1.3745. On the other hand, the resistance occurs in 1,3863, 1.3893 and psychological zone 1.3986. Unless USD forces regain the rush or oil prices rapidly, prejudice to USD/CAD remains distorted to the minus.
