US Dollar versus Canadian Dollar has broken below the 61.8% and 50% fibo retracement level on the daily time frame while also conquering 61.8% fibo zone on the intraday charts. 1.2576 and 1.2520 were important support levels and high supply demand zone - which the King Dollar was trying to hover above since 8th Aug but the bullish momentum on Canadian Dollar drove the market towards 38.2% fibo zone on the daily chart. The current market price is being supported by 1.24000 and 1.2443 support lines which needs to be broken for further bearish projections on USDCAD towards 1.2327 and 1.2280. Fundamental factors have shifted modestly in the Canadian dollar’s favor. Oil prices and their positive impact on the Canadian economy contrast with the struggles of the US businesses to find workers and increase output.

Rising oil prices are a double boom for the Canadian economy. Higher prices provide immediate income for a sector with largely fixed costs for existing wells and exploration and increased production mean additional jobs.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The MACD (Moving Average Convergence Divergence) and the Relative Strength Index (RSI) are negative indicators for the USD/CAD. When combined with the rising momentum of True Range, the odds of a test lower early in the week are quite high. Three of four moving averages (MA) which were in support of USD/CAD at the Monday open were crossed in the week's trading. The 50-day MA then at 1.2626 on Monday and the 100-day at 1.2483 and 200-day at 1.2514  MAs on Friday.  Indications are lower for the Monday open. The oversold conditions of relative strength index on the interday time frames are showing of temporary bullish correction towards daily pivot and 50% fibo level on the daily chart and 1.2574 and 1.2560.

USDCAD

Oct 10 2021