USDCAD Double Top Analysis
USDCAD has formed a double top pattern in March 2020.
Crude Oil crash made the USDCAD to reach the resistance 1.46, Click here to check our March 2020 Long term Analysis.
Now, Crude oil price has recovered well, So USDCAD fall down and now it’s going to reach the support zone.
Canadian Economy mostly depends on Crude oil, If the crude oil price falls, the Canadian Dollar becomes weak. if crude oil price rise, the Canadian economy becomes strong.
Crude Oil up = CAD strong = USDCAD down
Crude oil and USDCAD has an inverse correlation.
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US Dollar Weak
US Dollar makes lower after Non-Farm Payrolls reported lower numbers last Friday. US dollar continues to get weak.
Due to this, US Dollar weakness makes stronger UK Pound and economic data of the UK stronger after Vaccination well in Progress.
CAD
Canadian Dollar moved higher after the Bank of Canada taper its weekly asset purchases from $4 billion to $3 billion CAD per week.
And Oil prices moved higher will support Canadian Dollar upside move and US Dollar performed strong declines after NFP data published lower numbers than expectations.
But Canadian Domestic data such as Unemployment rate and Jobless claims also increase when compared to previous quarters.
USDCAD slipped near to 1.21 mark from 1.26 mark in the previous month, just 5% dropped in last 1 month of the period if it breaks 1.21 then moves to 1.19 mark as a monthly strong support zone.
Canadian economy performed well and regained back to a stable level as domestic data proved.
USDCAD is going to reach the strong support zone soon. Wait for the bounce back retracement or breakout of the support.
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This has been a good analysis