CANADIAN DOLLAR PRICE OUTLOOK: USD/CAD DROPS TOWARD KEY 1.30-LEVEL AS CRUDE OIL SURGESUSD/CAD value motion plunges amid broad-bas
CANADIAN DOLLAR PRICE OUTLOOK: USD/CAD DROPS TOWARD KEY 1.30-LEVEL AS CRUDE OIL SURGES
- USD/CAD value motion plunges amid broad-based Canadian Greenback power
- Canadian Greenback is gaining floor as crude oil costs explode larger
- USD/CAD bears push towards technical help close to the 1.3000-price stage
The Canadian Greenback is advancing towards almost all FX friends on Tuesday. USD/CAD value motion has turned sharply decrease, for instance, with the main foreign money pair down about 65-pips intraday and again inside arms-reach of the essential 1.3000-level. CAD/JPY has climbed about 45-pips on the day as Yen promoting strain, as a consequence of waning demand for safe-haven currencies, exacerbates Canadian Greenback beneficial properties. The newest inflow of CAD power appears primarily fueled by surging crude oil costs with the commodity climbing 25% month-to-date to its highest stage since March.
Study extra – CAD & Oil: Canadian Greenback to Crude Oil Correlation
USD/CAD PRICE CHART WITH CRUDE OIL OVERLAID: DAILY TIME FRAME (21 MAY TO 24 NOV 2020)
Chart by @RichDvorakFX created utilizing TradingView
That is weighing negatively on USD/CAD value motion seeing that the Canadian Greenback tends to strengthen as crude oil rises. As such, spot USD/CAD might face additional draw back if crude oil costs hold extending larger. Equally, spot CAD/JPY would possibly proceed to advance with crude oil ripping larger largely on the again of encouraging covid vaccine outcomes. But, as famous in my weekly crude oil outlook, there are notable near-side dangers that would undermine latest crude oil beneficial properties, which might put downward strain on the Canadian Greenback in flip if materialized.
| Change in | Longs | Shorts | OI |
| Each day | -4% | 3% | 0% |
| Weekly | -18% | 30% | 6% |
USD/CAD PRICE CHART: DAILY TIME FRAME (22 JUN TO 24 NOV 2020)
That each one stated, USD/CAD value motion would possibly bleed somewhat decrease as Canadian Greenback bulls make a deeper push towards the 1.3000-level. This potential space of technical help is highlighted by the 31 August and 09 November swing lows. An ongoing Bollinger Band squeeze might supply one other diploma of buoyancy close to the underside of its channel. One other stage for USD/CAD that may be value maintaining in thoughts is the one-week implied low on the 1.2981-mark as outlined in my newest USD value outlook. The downward-sloping 20-day easy shifting common may very well be regarded to as a possible space of resistance if a reduction bounce comes into play.
| Change in | Longs | Shorts | OI |
| Each day | 13% | -9% | 7% |
| Weekly | 3% | -36% | -11% |
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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