The USDCAD has a longer term inverted head and shoulder’s pattern in play.
Oil went into free fall in mid-2014, experiencing a relentless bear move which saw oil price drop by over 70%. US shale producers turned out to be the tipping point in terms of the global supply glut. This, combined with a decrease in global demand, proved to be an unstoppable force that lasted for over a year.
The USDCAD will apparently close the week below the 200DMA.
The USDCAD rallied to new highs for 2018 as crude oil pushed below the $47 level today.
2018 is nearly upon us and the past year was certainly full of interesting events. Potentially dangerous political events in the EU – such as the French & German elections and the Catalan independence referendum – were safely navigated.
Watch this comprehensive preview from Nicola Duke preparing you for what is coming ahead this week using her unique Harmonics approach and mesmerizing voice.
Canada is an important G7 country with a quite particular economy. It’s a net exporter of energy and tends to be viewed by the market as an oil-dependent economy. As oil started to plunge in late 2014, the Canadian Dollar followed suit and weakened substantially – vs the USD it climbed from roughly parity to […]
Anyone who is trading crude oil or USD/CAD should be aware of the important correlation between them. We know that if oil price rises then the Canadian economy benefits as they own considerable oil reserves (third only to Venezuela and Saudi Arabia). Furthermore, let’s not forget that the USD will likely drop in value if oil prices rise, and […]