USDCAD: is it a bear or a bull in disguise ?

[stephane]

USDCAD monthly. Is it reversing bearish, is it just retesting a broken resistance and it is going to rise again ? Hard to say.

My guess from a purely technical point of view is we are still going to fall, because it is already very expensive. But the pair is also clearly driven by fundamentals, that is oil prices crushing down.

Therefore no bias on that one, I am ready to trade it both sides.

 

[RahmanSL]

USDCAD: is it a bear or a bull in disguise?

On the "MN" chart, looks like a second horn is forming. So, which of the two animals have horns?

....BUT if I were to scalp trade that pair, I would carry out more "short" scalp it on the rise 'cause as soon as there is improvements in oil prices, the loonies will appreciate and down the pair will goes.

 

[NicholasM]

While the USD has always moved in opposite direction to the price of oil. I think the current plunge in oil price has more to do with than just the USD. Therefore, relating the current trend to the price of Oil may not be a very realistic measure. I believe that the USD could still rally against CAD, thereby triggering a rebound on the recent decline of USD/CAD. I think the renaissance shown by the CAD against USD could end soon, with more upside on the Horizon, but that depends on a couple of factors. Interest rate rise and prove of economic recovery. everyone wants to see the bullish sentiment in the stock market reflected in consumer spending.

 

[fxstrategist]

The 1.2500 is still a good support for the USDCAD.

 

[NicholasM]

The 1.2500 is still a good support for the USDCAD.

I appreciate you view fxstrategist, however, it appears as though the pair just broke the 1.2500 support level. Nonetheless, I still think that the USD will recover from this and kick on again.

 

[fxstrategist]

Good range on the USDCAD between the 1.2400 and the 1.2500. A breakout of the 1.2500 to the upside may take the price to the 1.2700 level.

 

[RahmanSL]

Oil will make the pair slide, but it's in consolidation mode and found buyers at the 1.244 levels....also, oil has lost some gains.

 

[fxstrategist]

There could be another visit to the 1.2700 level.

 

[mageral]

The pair perfectly illustrates Pennon pattern based on which you need to set yourself for purchase with target 1.2540

 

[fxstrategist]

The USDCAD rallies, but it is still within a descending channel that has formed on the daily chart, with the 1.2400 as the lower support level.