Technical Analysis

USD/CAD: Consumers look to ascertain extra bullish near-term momentum

USD/CAD jumps as oil plunges


ForexLive

It’s kind of of a double whammy for USD/CAD sellers immediately. Oil costs tumble already set the tone for a transfer decrease for the loonie however add to the truth that commodities on the whole are additionally falling and threat sentiment is deteriorating, it is serving to to place a bid within the greenback as nicely.

Proper now, worth is threatening to carry a break above the 100-hour MA (purple line) and in flip the near-term bias will flip extra bullish. The speedy focus then can be to look in direction of resistance from the 38.2 retracement degree @ 1.3245 which helped to restrict yesterday’s restoration.

A break there’ll assist to set the tone for a transfer increased again in direction of 1.3300. On condition that oil has now damaged a key help degree and appears in direction of $50, it should imply continued strain on the loonie over the approaching classes as consumers may have conviction to bid the pair increased.

There’s a bearish case for the greenback on account of falling oil costs as highlighted right here, however that may take a a lot bigger time-frame to play out. For now, the extra bullish near-term bias will lend itself as an excellent platform for an extra transfer increased in USD/CAD within the short-term.


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