USDCAD - Daily - Further Declines Are Possible
REVIEW
It has been a while since USD/CAD had such a bad week, like the last one. We saw the Canadian Dollar strengthening against its neighbouring currency, which pushed the rate lower, outside of the strong upwards moving channel. The pair was trading in that channel since the 2nd of February.
OUTLOOK (SCENARIO A / B)
In the short run, the pair is not looking strong. Potentially, USD/CAD could continue trading lower this week. If the price makes a move towards the strong support level at 1.28, a break below could signal further selling and could push the price towards the 1.27600 or even to the 1.26850 level.
On the upside, a strong move back up towards the psychological 1.30 level and a potential break of that key zone, could signal that the latest selloff was just a corrective retreat and that the bulls are back in the driver’s seat. Such a break could push USD/CAD to its recent highs at around 1.31250 area.
It has been a while since USD/CAD had such a bad week, like the last one. We saw the Canadian Dollar strengthening against its neighbouring currency, which pushed the rate lower, outside of the strong upwards moving channel. The pair was trading in that channel since the 2nd of February.
OUTLOOK (SCENARIO A / B)
In the short run, the pair is not looking strong. Potentially, USD/CAD could continue trading lower this week. If the price makes a move towards the strong support level at 1.28, a break below could signal further selling and could push the price towards the 1.27600 or even to the 1.26850 level.
On the upside, a strong move back up towards the psychological 1.30 level and a potential break of that key zone, could signal that the latest selloff was just a corrective retreat and that the bulls are back in the driver’s seat. Such a break could push USD/CAD to its recent highs at around 1.31250 area.