Trading plan for December 6
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Canada is awaiting the release of its trade balance at 15:30 MT time. According to forecast, we will see a further deficit of 7 million Canadian dollars. If actual figures are greater than the forecast, the CAD will be supported.
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Also, at 17:00 we anticipate the release of American ISM Non-Manufacturing purchasing managers index. The indicator is expected to decline. The higher-than-expected level will be good for the USD.
In other news, today we anticipate the OPEC+ meeting, where the future cut of oil production to be discussed.
Now let’s look at the charts.
USD/CAD is rising due to increased risk-off sentiment after the Chief Financial Officer of the Chinese company Huawei was arrested on the US request in Canada. In other news that weakened the CAD, the Bank of Canada statement was not as hawkish as expected. USD/CAD has already broken the resistance at 1.3368. If today’s release of trade balance shows higher figures than expected, the pair can fall again towards the 1.3368 level. The next support lies at 1.3277. If the USD is strong and the release for Canada disappoint the investors, the pair will rise towards the next resistance at 1.3449.
EUR/USD is trading sideways with strong support at 1.1329. If the USD is supported by higher-than-expected Non-Manufacturing PMI, the pair will fall towards the next support at 1.1256. Otherwise, it will sick above this level. The next resistance is placed at 1.1391.
Now let’s look at the charts of crude oil and find out how the outcome of the OPEC+ meeting will affect WTI and Brent.
If the sides agree on a production cut, WTI rise towards the resistance at 53.92. In the opposite situation, it can break the support at 52.20. The next support is at 50.81.
As for Brent, a successful outcome will drive the crude’s price towards the resistance at 63.04. Otherwise, it will stick below the support at 61.03 targeting the next support at 59.41.