USDCAD: Weekly Analysis for all Market Participants - Eaglesinvestors

This week looks promising for the USDCAD pair that is strengthening due to the decrease in oil prices.

CAD was the only major currency that could not take advantage of investors’ heightened interest in risk. The reason for CAD’s weakness was the decline in oil prices after US President Donald Trump’s twit.

For the first time this year, D. Trump criticized OPEC’s actions in respects to Oil price stabilization. The twit also states that adding that high prices for “black gold” can harm the global economy.

Despite the absence of sarcastic comments from the president, market participants are taking into consideration possible US pressure on Saudi Arabia.

The fundamental events of today, starting with the Fed Chairman Jerome Powell speech in Congress at 17:00 (GMT+2). Also, at 23:30 (GMT+2) API will publish a report on US energy reserves.

Both announcements will create trading opportunities for the USDCAD pair and Oil.

Support and resistance for USDCAD

The 4-hour chart points to consolidation at the top of Bollinger bands. The indicator reverses upwards and the price range widens, indicating a continuation of the upward trend for USDCAD. MACD histogram keeps a poor sell signal, stochastic shows the overbought area; a strong sell signal can be formed within 1–2 days.

The first support level for USDCAD it’s at 1,3113 and second support level at 1,3181. Resistance levels are easy to spot for USDCAD with the first at 1,3240 and second at 1,3270.

usdcadI hope this analysis will help you make the right informed decision before placing any trades.

Like always I wish you Happy Trading and Every Success!

 

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