The USDCAD pair has been
rising slowly over the last few days but stopped at September highs near 1.3250
and since then, bears have taken control and the Loonie has been strengthening,
although not sharply. On Friday, the USDCAD pair was trading 0.20 percent
lower, seen at around 1.3150 during the London session.
The pair also fell below previous highs at
1.3160 and more importantly, it is now dropping below the medium-term bullish
trend line, which could lead to a trend reversal over the next few days. If the
pair closes below this trend line, bears could be further stronger, with the
next target at 1.3120 and the following target could be near 1.3050.
On the upside, bulls need to defend the
mentioned support of 1.3160 and after that another bearish zone could be
located at 1.3250 and, possibly at previous highs near 1.3250.
The RSI indicator is slowly reaching the
oversold territory, meaning a small bounce could occur. As long as oil remains
below 60 USD, the Canadian Dollar may not significantly strengthen.
Disclaimer:
Analysis and opinions provided herein are intended solely for
informational and educational purposes and don't represent a recommendation or
an investment advice by TeleTrade. Indiscriminate reliance on illustrative or
informational materials may lead to losses.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.