After breaking through the trend line and 61.8% retracement last week, USDCAD is now testing a strong resistance area. With dollar strength last week (DXY is testing 95 level now again), a break above the current resistance area provides a good buying opportunity.
Currently the pair is very fundamentally-driven. Trade war jitters between US and China will have an impact this week as Beijing is retaliating against US tariffs. The earthquake this morning in Japan may cause money to flow to safe havens depending on the damage to the industry.
Important to watch for the OPEC meeting in Vienna on June 22nd, CAD being very dependant on oil prices. Last Friday during the sell off of oil in the second half of the afternoon is what weakened the CAD so much and, paired with a strong dollar, created this bullish run. So far bad economy of Venezuela, Iran sanctions, Trump's critique of OPEC, all this puts major importance on the meeting. If OPEC decides to increase production, we could see a further sell off in the oil market. Main players to watch are Saudi Arabia and Russia.
Technically, The price is now testing resistance area around 1.33, with RSI now touching the 70 handle. Looking at DXY chart it is also at key resistance of 95, trying to push higher. Trading this pair fundamentally is safer at the moment with so much depending on politics.
Happy Trading!
Currently the pair is very fundamentally-driven. Trade war jitters between US and China will have an impact this week as Beijing is retaliating against US tariffs. The earthquake this morning in Japan may cause money to flow to safe havens depending on the damage to the industry.
Important to watch for the OPEC meeting in Vienna on June 22nd, CAD being very dependant on oil prices. Last Friday during the sell off of oil in the second half of the afternoon is what weakened the CAD so much and, paired with a strong dollar, created this bullish run. So far bad economy of Venezuela, Iran sanctions, Trump's critique of OPEC, all this puts major importance on the meeting. If OPEC decides to increase production, we could see a further sell off in the oil market. Main players to watch are Saudi Arabia and Russia.
Technically, The price is now testing resistance area around 1.33, with RSI now touching the 70 handle. Looking at DXY chart it is also at key resistance of 95, trying to push higher. Trading this pair fundamentally is safer at the moment with so much depending on politics.
Happy Trading!
Note
Note
Price breaking higher on strong dollar
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.