USD/CAD: Another pullback from 5-month old resistance-line as WTI catches a breath

• Energy bears’ break favors the USD/CAD pair’s momentum sellers.
• Manufacturing PMI in the focus for fresh impulse.

A little halt in WTI decline and greenback weakness triggers the USD/CAD pair’s pullback to 1.3510 during early Monday.

On Friday, the quote surged to the highest since January 03 as prices of WTI crude oil slumped to mid-February bottoms amid doubts that growing trade tussles could weigh on global economic growth.

However, the quote couldn’t stretch its upside beyond an ascending trend-line connecting high since January 07.

Not only its failure to cross important resistance but the US Secretary of State Mike Pompeo’s readiness to initiate the US-Iran talk without any preconditions also offered WTI sellers a gap to catch a breath.

Looking forward, Canadian Markit manufacturing purchasing manager index (PMI) and the US ISM manufacturing PMI are on the economic calendar to please the Loonie traders.

While the Canadian manufacturing gauge isn’t expected to cross 50.00 line despite likely uptick to 49.8 from 49.7, the US counterpart may rise to 53.3 from 52.8 earlier.

Technical Analysis

Sustained break of five-month-old resistance-line, at 1.3575 now, can validate the pair’s further upside to 1.3625 and then to 1.3665/70, failure to do so highlights 1.3500 and 50-day simple moving average (SMA) level of 1.3420.