USD/CAD technical view

Canada is the seventh oil producer of the world, that’s why Canadian dollar is so closely attached to oil movements. and precisely because of that, with oil in a quite tight range between 70/80 bucks a barrel, is why USD/CAD also remains range bound. I have warned several times in webinars and I believe in here, that two main Central banks, Canada, and New Zealand are expresing worries about having a strong currency that deteriorates their economic recovery. So yesterday’s dovish speech and rates hold was not a surprise. As long as oil remains in range, Canadian dollar likley to remain more attached to market sentiment/gold/risk than oil itself.

Anyway, 4 hours charts show pair fighting the 1.0600 area, and slightly bearish; immediate support comes at the 1.0550/60 area, ahead of 1.0500, while above 1.0620 pair has next resistance level at the 1.0670/80 area. Midterm key level to watch for me, lies at the 1.0770 area. Pair could regain some upside strength above there, and approach to the 1.1000 area. At this point, 1.0400 level is the key support to watch: if we lost that level, pair could turn bearish in the term.

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