USD/CAD risks breaking the monthly R1

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Right now the Canadian dollar and oil are joined at the hip, so whenever there's a move in oil it's going to drag down the loonie."
- Oanda (based on CNBC) 


Pair's Outlook 
The US currency's behaviour fell in line with expectations, with the USD/CAD closing trade several pips in front of the second resistance target. The weekly PP and the psychological level of 1.43 provide rather strong resistance, for a breach of which the Greenback lacks impetus today, as rising oil prices are strengthening the Loonie. As a result, the pair is likely to partially erase Monday's gains, while the 20-day SMA acts as the closest support around 1.4204. The key support, however, is located at 1.4124, namely the monthly R1, but according to technical studies, a drop that low is doubtful.  

Traders' Sentiment 
Bears pushed forward, now taking up 64% of the market. Pending orders are equally divided between the buy and the sell ones.
© Dukascopy Bank SA

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.