Friday witnessed a subtle ascent of the Canadian Dollar, propelled by the surge in crude oil prices. However, the optimism was tempered by a larger-than-anticipated decline in Canada’s retail sales, imposing limitations on the currency’s upward potential. Despite a positive overall performance throughout the week, the Loonie remains in a downtrend against the US Dollar.
Friday saw a spirited ascent of the Canadian Dollar (CAD), propelled by a late-week surge in crude oil bids, as CAD traders resiliently brushed aside prevailing headwinds. While Canada faced a swifter-than-expected decline in retail sales for November, the Bank of Canada (BoC) joined the ranks of global central banks, managing expectations by signaling a more measured and gradual approach to anticipated rate cuts, diverging from initial investor hopes.
Technical Market Analysis: USD/CAD (US Dollar/Canadian Dollar) Falls Short of $1.3500
On Friday, the Canadian Dollar appreciated, leading to a notable decline in the USD/CAD pair. Upon examining the chart, the daily candlestick reflecting the day’s trading activities reveals a prominent upper shadow. This upper shadow suggests that initially, during the daily trading session, the USD/CAD market experienced a substantial increase in value until the price reached the $1.3500 level. Subsequently, a bear market was triggered.
The price correction was significant, with the price appearing poised to close around $1.34232, aligning with the market opening on Tuesday, January 16. There is a potential support level forming around this mark if the market concludes at this level. Additionally, in the Relative Strength Index (RSI), the RSI line has now descended to the 50 level. In the coming week, there is a possibility that bulls may intervene from this level, potentially causing the price to resume its upward trajectory.
Get free access to our lifetime VIP membership. Join us here.
Leave a Reply