Light crude
oil, WTI rallied for today above the 40.00 level and it is nearing the 41.00
level. The rally on crude has helped the Canadian Dollar, due to the fact that
those two instruments have a positive correlation. On the daily chart of the
USD/CAD we see a very interesting price action. The bearish trend is still in
place and that can be confirmed by the slope and direction of the 21 day
exponential moving average, yellow line. After the price breaks below the 200
day EMA, blue line, it retraced to that zone, but the moving average, along
with the 1.3400 level acted as good resistance. The pair drops to the 1.3100
level and stalls at the moment there, but since the bearish trend is still in
place, it may continue dropping towards the 1.2827 level. The 21 EMA is trying
to break below the 200 EMA and if it does then it could be an indication of
further drops on the USD/CAD. In case the price goes back up for any reason,
then the 1.3400 zone could act once again as resistance.
The pair seems unstoppable.
ReplyDeleteI think the pair might reach 1.2600 eventually.
ReplyDeleteA prolonged and steady decline!
ReplyDeleteThe pair will continue falling, I think.
ReplyDeleteExcellent assessment!
ReplyDeleteInformative!
ReplyDeleteGood assessment!
ReplyDeleteThe end of strong down movment is coming
ReplyDeleteGood analysis.
ReplyDelete