USD/CAD Poised For Additional Leg Decrease

CAD value, information and evaluation:

• USD/CAD seems able to resume its earlier decline after relative stability within the pair over the previous seven days.
• Lengthy-term, it might even fall to the 1.2062 low recorded in September 2017, with CAD boosted by the probability of additional energy in crude oil costs.

USD/CAD outlook: additional losses seemingly

USD/CAD has traded in a comparatively slender vary between 1.2351 and 1.2252 since Thursday final week however now seems properly positioned to renew its earlier decline that took it from virtually 1.34 in late October final 12 months all the way down to present ranges.

Wanting on the chart under, the current stability seems like a interval of consolidation that might properly be adopted by falls that might attain so far as the 1.2062 low recorded in September 2017 that appears now like an affordable long-term goal for the pair.

USD/CAD Value Chart, Day by day Timeframe (October 21, 2020 – Might 6, 2021)

Supply: IG (You possibly can click on on it for a bigger picture)

Behind the energy of the Canadian Greenback lies the advance in crude oil costs, which have benefited from larger demand – together with commodities such copper, iron ore and aluminum – as the worldwide economic system recovers after the downturn attributable to the coronavirus pandemic. Oil is Canada’s largest export by far.

As the following chart reveals, the worth of US crude has popped larger from a symmetrical triangle continuation sample that may be considered signaling a resumption of the prior development larger.

US Crude Oil Value Chart, Day by day Timeframe (October 16, 2020 – Might 6, 2021)

Supply: IG

— Written by Martin Essex, Analyst

Be at liberty to contact me on Twitter @MartinSEssex