Fundamental and Technical Analysis of USDCAD
Fundemental Analysis
The stock markets on Monday saw a rally after the news about the reduction in the number of deaths from COVID-19 in Europe and the US, but also because we have been recently seeing a stabilization in the number of cases. Investors are waiting for an entry point and any good news will give them the green signal to start buying shares.
There is also more good news from China, where according to their reports the cases of COVID-19 have been declining steadily; this means that factories in China can resume work, which is great news for the US.
If we get any bad news about COVID-19, this will be invalidated, so keep yourself updated!
I also hope that we will get a deal signed to regulate the volume of crude oil production between the US and Saudi Arabia, as this will heavily affect the CAD, as a successful deal will make the USDCAD tank, which seems likely right now to me.
Technical Analysis
USDCAD has recently moved below the 20 MA, and is moving towards the 50 MA. We have also just gone below the 2/1 Gann Fan level. We are currently on the support which we might bounce off tomorrow as SPY could make a downwards move after such a rally.
We have also crossed the 0.382 Fib Level which is also another bearish signal to watch out for.
If you have any questions feel free to leave them in the comments below.
cheers,
tonite
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