Tuesday, January 5, 2016

The USD/CAD returns to its bullish trend

The USD/CAD has gone back to its bullish trend as oil goes back down. We know that oil and the Canadian Dollar have a positive correlation and that is why when oil drops, the USD/CAD tends to rally. The pair tried to break above the 1.4000 level as we can see on the daily chart, but it stalls around that zone. However, the bullish trend is still in place as shown by the 21 period exponential moving average, yellow line, and it is possible to see a breakout of that level, which could take the pair to the 1.4100 level. To the downside, the 1.3800 could become its most relevant support.


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