CAD Price & Crude Oil Charts: USD/CAD May Reverse Higher as Support Holds
Crude Oil and USD/CAD Price
USD/CAD & Oil Price – Reversed Course
On Sep 3, Canadian Dollar soften on the back of weak oil price . This led USD/CAD to rally towards 1.3382 - its highest level in over six weeks. Meanwhile Brent oil fell to its lowest level in nearly four weeks at $57.12.
However, on the following days both markets U- turned as USD/CAD traded lower then closed the weekly candlestick below 1.3200 handle. On other hand, broke above $60.00 threshold and closed on Friday with a 4.1% gain.
On Sep 4, the Relative Strength Index (RSI) dipped below 50 on USDCAD highlighting possible start of downtrend momentum. In turn, the oscillator climbed above 50 on Brent Oil indicating that buyers are gathering momentum.
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USD/CAD DAILY PRICE CHART (Aug 1, 2017 – Sep 10, 2019) Zoomed Out
USD/CAD DAILY PRICE CHART (June 10 – SEp 10, 2019) Zoomed In
Looking at the daily chart, we notice on Friday USD/CAD tested the low end of current trading zone 1.3166 – 1.3256 however, sellers failed to force a close below the low end. Yesterday, sellers failed again to move the price to a lower trading zone.
Thus, the pair could be on its way for a test of the high end of the trading zone. Although, the weekly resistance level underscored on the chart (zoomed in) should be considered. Further close above the high end might push USDCAD towards 1.3357 contingent on clearing the weekly resistance levels underlined on the chart.
On the flip side, any successful close below the low end of the zone could send the price towards 1.3064. That said, sellers need to pay a close attention on the weekly support levels marked on the chart.
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Brent Oil DAILY PRICE CHART (Aug 1, 2017 – SEP 10, 2019) Zoomed Out
Brent Oil DAILY PRICE CHART (June 21 – Sep 10, 2019) Zoomed In
From the daily chart, we notice on Friday Brent oil rallied to a higher trading zone $61.30 – $63.10 eyeing a test of the high end.
Hence, a close above the high end could push the black gold towards the vicinity of 64.40-50. Nonetheless, the weekly resistance level underlined on the chart would be worth monitoring.
On the other hand, any failure to close above the high end could reverse the price’s direction sending it back towards the low end. Further close below the low end may send the price towards $57.60. However, the weekly support levels marked on the chart should be watched along the way.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.