USD / CAD PAIR FALLS FOLLOWING CANADA DOLLAR STRENGTH DUE TO INCREASING GLOBAL CRUDE OIL PRICES

07.12.2020
Technical Analysis
7th Dec. - The USD / CAD pair recorded a steady decline giving an indication of the strengthening of the Canadian Dollar at the moment against the US Dollar.

Important economic data such as the Non-Farm Payroll that was published did not help strengthen the US Dollar while the increase in crude oil prices helped to generate the Canadian economy as well as strengthen the Canadian Dollar.

The USD / CAD pair price is currently trading at par 1,278 compared to 1,299 at the beginning of last week. The price momentum is in a "strong bearish" state and will most likely continue to decline.

From the Moving Average point of view, the price is below MA14 and is in the bearish zone of Bollinger Bands indicating a decline will continue over time. We expect the price to drop to the level of 1.253 or lower to the level of 1.225 in the near term.



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AHMAD FAIZUDDIN BIN RAZALI

ANALYST OF CDG GLOBAL