CANADIAN DOLLAR FORECAST: USD/CAD PRICE TESTS TECHNICAL SUPPORT POST-FED, EUR/CAD JUMPS AFTER ECB
- Canadian Dollar opinion stays mired by crude oil prices and coronavirus retrogression risk
- USD/CAD cost movement bounces off a vicious technical support section as a US Dollar recovers from a FOMC driven selloff
- EUR/CAD rips aloft after a ECB meeting and could continue a stand while a Canadian Dollar gives behind new gains
The Canadian Dollar looks like it might start to come underneath vigour following an considerable liberation in CAD cost movement over a final few weeks. Despite a 5% convene notched by a Canadian Dollar Currency Index (CXY) given a Mar 18 low, a Loonie still trades about 7% next a year-to-date high. Canadian Dollar debility given Jan has mirrored a wanton oil cost pile-up deliberation a appetite section contributes roughly 10% to Canada GDP.
CANADIAN DOLLAR REBOUNDED AS CRUDE OIL PRICES BOTTOMED; WILL CORONAVIRUS RECESSION RISK RESURFACE PUSH THE LOONIE LOWER?
Crude oil prices also tend to have a element impact on inflation. Seeing that a Bank of Canada ruling charge is acceleration targeting, pointy swings in wanton oil can import extremely on BOC financial process decisions. On that note, aiming to equivalent mercantile misunderstanding that stems from a coronavirus pestilence and likely unavoidable recession, a BOC slashed aim seductiveness rates this year along with several other executive banks.
Learn More – CAD Oil: Canadian Dollar and Oil Price Correlation
Downward vigour on a Loonie and Canadian economy subsided following dovish movement from a BOC and OPEC+ deal that is expected to put a building in wanton oil. While wanton oil direct woes persist and marketplace complacency builds, however, a new Canadian Dollar miscarry might shortly knowledge another breakdown. That said, USD/CAD and EUR/CAD cost movement are both responding to vital technical support levels and suggests a Canadian Dollar could be on a fork of a reversal.
USD/CAD PRICE CHART: DAILY TIME FRAME (31 DECEMBER 2019 TO 30 APRIL 2020)
USD/CAD is hovering above a support section underpinned by a 1.3800 handle. Spot USD/CAD cost movement has so distant hold a Apr 13 intraday low and provides a pointer of support for Canadian Dollar bears. Although, if USD/CAD prices try to extend a rebound, a 1.4000 level, that is underpinned by a 9-day and 34-day exponential relocating averages, could benefaction headwinds.
EUR/CAD PRICE CHART: DAILY TIME FRAME (25 JANUARY TO 30 APRIL 2020)
EUR/CAD is also climbing as a Euro rips aloft off technical support nearby a 1.5050 cost level. Spot EUR/CAD jumped after using into a bottom Bollinger Band and reiterated a bullish rising wedge draft pattern. Additionally, it looks like EUR/CAD is on gait to imitation a bullish engulfing candlestick, which, if confirmed, provides another denote that a Canadian Dollar has started to retreat behind lower.
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