Home Forex 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

GBP/USD Gains Intraday Momentum and Retains Strong Support

GBP/USD reverses the intraday trend and crosses above 61.80% Fib retracement level as the price spikes steeply, and the pair trades at 1.22683, at...

New Zealand Dollar Draws a Winning Streak Yet Faces a Strong Resistance at 0.61

NZD/USD seems to be an intraday gainer and hits 0.61 after 9 days, and in between, it dipped as low as 0.592 on the...

GBP/USD Hit 7-week Low and Falls Under Selling Pressure

GBP/USD was seen accumulating until the onset of the ongoing month, and the pair is now experiencing a trend revision as it draws a...

EUR/USD Hits a Fresh 7-day Low Due to Lack of Intraday Traction

EUR/USD experiences a freefall in the intraday as it nosedives as low as 1.077 on the half-hourly chart. The pair is experiencing an intraday...

EUR/USD Gains Intraday Momentum & it Rises Above 1.08

EUR/USD rebounded from an intraday low of 1.07 to trade at 1.084, at the press time. However, it fails to regain 50-day and 200-day...