Home Forex News USD/CAD Extends the Dip as Crude Oil Faces Intraday Pullback

USD/CAD Extends the Dip as Crude Oil Faces Intraday Pullback

USD/CAD drops below 50-day and 200-day moving average due to intraday pullback in the price of WTI crude oil. The pair has retested 1.40 after a 10 days retreat where USD/CAD marked a 4-year high at 1.46722. As the demand for oil plunges due to widespread of Coronavirus and extension of lockdowns in the country, the related current faces intraday correction. The global recession is digging deeper as the COVID’19 is not likely to leave any sooner. That said, the Federal Reserve has injected a $2.2 trillion stimulus package in the economy to extend hands amidst the pandemic outbreak.

CAD Analysis

After marking a bullish move at 1.46722, USD/CAD became the prey of 4-day, a subtle trend followed by a steep move to currently hover around 1.40250. Towards the end of the downtrend, the pair lost support from the 50-day and 200-day moving average as the greenback weakened. This has rightly burdened the sight of the American Dollar as the US surpasses the coronavirus cases in comparison to the epicenter of the virus.

USD/CAD failed to keep afloat and recorded a 1.75% low from yesterday’s trading session high marked at 1.4276 to the current price at 1.40250. Moreover, the pair has already slid below the 61.8% Fib retracement level as it slides below 1.4175. The major support to watch out at remains grounded at 1.39; however, a further change in the oil price, either negative or positive, is likely to be the major catalyst for the pair’s intraday performance. On the contrary, if the pair retraces a positive intraday move, there is likely to be an S/R flip as 61.8% Fib will be the resistance to look at.

Timmy Murphy
Timmy Murphy
Timmy is a crypto and finance analyst. He deals with finance news-stories. He has completed his graduation in accounting and Finance. He is also a blogger and is famous for his finance blog. For any issues, feel free to contact him at email: timmy@forexnews.world

Must Read

Export Retention Standardized for All Sectors by RBZ

The Reserve Bank of Zimbabwe announced on August 21 that it had set the threshold for foreign currency retention at 70% for all exporters....

Bitmax confirms that COTI is available for Fiat purchase

COTI is the 1st blockchain protocol in the world that has been optimized for decentralized payments. It has been specifically designed to be used...

Fiscal Stimulus of $306 Billion to Revive the Power Distribution Sector of India

The Covid-19 pandemic has brought the power distribution companies (DISCOMS) in India to their knees. They are currently facing massive cash flow problems and...

Dollar Moves Higher Due to Positive Sentiments in the Currency Markets

The dollar moved higher today, snapping a seven week-long losing streak. It was supported by stronger jobs data and global currency market demand for...

No Consensus by Lawmakers on U.S Fiscal Package—Dollar Takes A Hit

As U.S lawmakers, the Republicans and the Democrats fail to reach a consensus on the way forward for an economic stimulus package, the dollar...