USD/CAD Stalls Close to 2016 Excessive, Will it Reverse?

USD/CAD Value Outlook:

• USD/CAD staged a meteoric rise greater this week because the US Dollar reigned supreme
• Current worth motion has stalled across the pair’s 4-year excessive of 1.4694

Canadian Greenback Forecast: USD/CAD Stalls Close to 2016 Excessive, Will it Reverse?

USD/CAD exploded greater this week as merchants sought the relative security of the Dollar and a debilitating drop in crude oil seems to be to weigh on the Canadian economic system. Because of this, the pair rapidly shot above the 1.45 stage and neared the 2016 excessive of 1.4694 – taking out a plethora of technical and psychological ranges within the course of. Now, nevertheless, worth motion has slowed, and the pair has posted two lengthy higher wicks barely beneath resistance.

USD/CAD Value Chart: Every day Time Body (January 2016 – March 2020)

Whereas the elemental panorama stays successfully unforecastable, worth has begun to recommend the USD/CAD ascent is slowing, doubtless partly due to the numerous stage that rests overhead. So, whereas our skill to confidently forecast directional strikes has been undermined, the risk-reward profile of the pair at this stage is turning into more and more engaging for bearish alternatives. That being mentioned, you will need to grasp the immense uncertainty and volatility throughout the market proper now and to know the threats it poses when buying and selling.