Technical analysis 06.06.2018

USDCAD

The pair is consolidating above the level of 1.2910. CAD has received support as the US oil reserve data recently released by the American Petroleum Institute show 2 million barrels less than the previous week. The Canadian currency’s growth is also restrained by the increase in gasoline reserves by 3.8 million barrels. If today’s data indicate further decrease of the oil reserves, it may support oil prices.

The price is below the middle line of the borders of Bollinger bands, below EMA 5 and EMA 13. RSI has passed the level of 50%. Stochastic oscillators are entering the oversold territory.

Trading recommendations:

The growth of oil prices will put the pair under pressure and after passing 1.2910 it may go further down to 1.2820.