The weekly U.S. oil stock cycle is in and reviews are combined. Earlier this morning, the EIA Crude Oil Shares Report confirmed a -0.876 million ba
The weekly U.S. oil stock cycle is in and reviews are combined. Earlier this morning, the EIA Crude Oil Shares Report confirmed a -0.876 million barrel draw. Right this moment’s EIA determine got here on the heels of Tuesday’s API Crude Oil Shares Report of a 3.910 million barrel provide construct. The conflicting numbers have led to an intrasession consolidation sample in Might WTI crude oil simply above $60.00. Subsequently, the USD/CAD has posted a big foreign exchange session lack of -0.42%.
Along with the EIA report, the Wednesday financial calendar featured a number of attention-grabbing occasions. Right here’s a take a look at the highlights:
Occasion Precise Projected Earlier
MBA 30-Yr Mortgage Fee 3.33% NA 3.36%
ADP Employment Change 517Ok 550Ok 117Ok
Chicago PMI 66.3 60.7 59.5
Pending Dwelling Gross sales (MoM) -10.6% -2.6% -2.8%
Briefly, mortgage charges are down, as are Pending Dwelling Gross sales. Nonetheless, U.S. house provides are very lean proper now and are the first driver of February’s downturn. On the employment entrance, the ADP Employment Change got here in effectively above the earlier launch. Whereas this determine missed projections, it does sign that the non-public sector is actively hiring staff. All in all, this group means that the American COVID-19 restoration is progressing effectively.
Let’s dig into the USD/CAD and try the intermediate-term technical image.
USD/CAD: Weekly Outlook
At press time (about 2:00 PM EST), the USD/CAD is buying and selling close to the 1.2575 quarter-handle. Intraday participation has been bearish, paring weekly features.
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Listed here are two ranges value watching till Friday’s closing bell:
- Resistance(1): Weekly SMA, 1.2659
- Help(1): 2021 Low, 1.2356
Backside Line: If we see a late-week surge within the USD/CAD, a brief commerce might arrange properly. Till Friday’s shut, I’ll have promote orders within the queue from 1.2657. With an preliminary cease loss at 1.2679, this commerce produces 22 pips on a typical 1:1 danger vs reward ratio.