The Canadian economic system suffered a large contraction through the lock-down months and the rebound wasn’t too convincing throughout summer tim
The Canadian economic system suffered a large contraction through the lock-down months and the rebound wasn’t too convincing throughout summer time. Now, with the brand new restrictions imposed in November, the economic system will most likely enter one other recession interval throughout winter.
Though the CAD has been fairly bullish since March, sending USD/CAD decrease. The rise in crude Oil costs since April has been serving to the Canadian Greenback, since they re each positively correlated. USD/CAD has been on a bearish development in consequence and has misplaced round 18 cents.
The downtrend picked up tempo in November, because the USD decline accelerated after the presidential elections and this pair broke under 1.30. Throughout this time, transferring averages have been doing an excellent job as resistance, taking on turns as they see match. Right this moment, the worth retraced greater because the USD gained some floor, however the pullback appears to have stalled on the 50 SMA (yellow).
This transferring common supplied resistance and the earlier candlestick closed as a doji, which is a bearish reversing sign after the retrace up. This seems like a great alternative to go brief on USD/CAD, however my colleague Arslan already opened a promote sign right here earlier on, so we’re brief on this pair. That sign yow will discover on our foreign exchange indicators part.