Forex pair USDCAD closely track crude oil WTI performance, where crude oil WTI price rise will see this forex pair sell off in price level, inversely related to Crude Oil WTI.
Research taken from Investopedia "The USD/CAD is affected by factors that influence the value of the U.S. dollar and/or the Canadian dollar in relation to each other and other currencies. For this reason, the interest rate differential between the Federal Reserve (Fed) and the Bank of Canada (BoC), will affect the value of these currencies when compared to each other. When the Fed intervenes in open market activities to make the U.S. dollar stronger, for example, the value of the USD/CAD cross will increase because it will take more Canadian dollars to purchase the stronger U.S dollar."
Based on TA
Weekly Chart is observed with
1) head and shoulder chart patterns illustrated in orange color lines couple with double top using black color uptrend line as a guide, broken down of ascending triangle chart pattern using brown color line couple with black color uptrend line.
2) swing setup had been spotted with purple color line target of possible 1.11 lower end of brown color line, possible support at 1.10 using blue color line as reference.
Monthly chart suggests medium to long term price target range of 1.06 to 1.11 (estimate) box in yellow rectangle. Possible treacherous back test black color downtrend line as support which is around 0.9 to 0.99 2nd yellow rectangle (estimate) price level. There is also a falling wedge chart which could see short term rebound.
Drawing reference from Crude Oil (WTI) chart
1) year 2002 USDCAD reach price level 1.60 which is Crude oil price level around 20 price level.
2) year 2008 USDCAD reach price level 0.9 which is Crude oil price level around 147 price level.
3) year 2009 USDCAD reach price level 1.30 which Crude oil price level reach year 2009 low of 33.50 after hitting all time high of 147 prices in year 2008.
4) year 2016 Crude Oil hit all time low of 26.05 where USDCAD price reach around 1.45 to 1.46 (estimate).
5) Based on TA projection if Crude oil WTI price level is satisfied at price level 75 to 90 could see USDCAD reach price 1.05 to 1.11 range.
USDCAD Weekly Chart
USDCAD Weekly Chart w TA
USDCAD Monthly Chart
USDCAD Monthly Chart w TA
USDCAD Monthly Chart w TA Explanations
Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.
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