USD/CAD Holding Gains to 1.3065 on After Canadian Data
The USD/CAD pair was unmoved above the mid-point of 1.3000-1.3100 handle despite of weaker-than-expected economic data from Canada.
According to the data released by Statistics Canada, Canada's current account balance for Q1 2016 came-in to show a deficit of -$16.77B, slightly better than -$16.8B expected deficit, but was still higher than -15.7B recorded in the previous quarter.
Meanwhile Industrial Product Price Index in April declined 0.5%, slightly slower pace of decline as compared to a fall of 0.6% registered in March, and the Raw Materials Price Index increased 0.7% in April vs. expected rise of 2.2% and 4.5% rise in March.
With the US markets closed in observance of a Memorial Day holiday, the USD/CAD pair is likely to move in tandem with movement in crude oil prices.
Technical outlook
Gregor Horvat, Chief Technical Strategist at EW-Forecast notes, "USD/CAD is trading in the wave A, but in the diagonal pattern on larger time frames. This means we have an overlap between wave 4) and 1), that is common for this kind of structure. Since OIL is falling from recent highs we see this move up to extend a bit more higher to resistance around 1.3290 levels where wave A may complete itself. Recently broken corrective channel of the previous corrective move in red wave 4 could indicate stronger prices in sessions ahead."
