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

Is Zcash Still a Better Option Than Monero and Dash?

Transaction data of most cryptocurrencies like Bitcoin are distributed on a public ledger that anyone can view. It is the rising concern over the...

Coinbase App vs. Coinbase Wallet App – A Comparative Study

Coinbase is one of the leading cryptocurrency exchanges globally and is a decentralized exchange platform for Bitcoin and various other top cryptocurrencies. Some has...

Litecoin Mining: Know About How to Guide

Introduction: How to mine Litecoin Litecoin (LTC) is one of the earliest digital currencies designed by former Google engineer Charlie Lee in October 2011. Litecoin...

Understanding Crypto Trading: A Guide for Newbies

With 24 hours trading volumes that average around $50 billion or even more and cross over $100 billion, the cryptocurrency market has grown significantly...

Views of Chamath Palihapitiya on Bitcoin

A lot of factors drive the world of cryptocurrency and blockchain technology, and one of the most sophisticated factors that we are going to...