The past weeks have been quite a volatile market for the USDCAD. We’ve seen sellers push the market bearish as USDCAD falls towards the long term trend. We lastly reported on the pair last month when it was ranging.(https://fxsits.com/usdcad-price-action-2/). Now the pair has broken the anti-trend line and continues to move bearish towards level 1.29550 .
In the chart we’ve seen price break past level 1,33356 which now acts as our support at the moment. Since, the break price has moved approximately 165 pips and price now trades above the new support level 1.31424. If price breaks level 1.31424 in the coming trading days. Then level 1.29550 will be exposed.This could potentially be our next will be our next support level. However, price could move towards level 1.33356 which is our Resistance and hold at the level.
Note that the as USDCAD falls it is mostly affected by oil price since the Canadian economy is largely dependent on the oil output and oil prices. Also on the other hand the US dollar is also depreciating since the COVID-19 pandemic which has let the dollar lose huge value. So be mindful on the pair with proper analysis and patience before trading the pair. We believe a strong bearish move is imminent. Subscribe to our smart signals plan for entries and exits.
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