USDCAD and Oil!

USDCAD and Oil!
Analysis
Ahura Chalki
Author:
Ahura Chalki
Published on: 27.08.2021 13:52 (UTC)
Post reading time: 1.08 min
69

Oil up to lift the Loonie! 


As Storm hit the production in Mexico the explosion in Kabul increased the Risk in the Middle East, Oil rose and hold its uptrend, despite the volatility of Stock Markets, which is not in the favor of the Oil market. 


On the other hand, US Dollar also decreased earlier today, as the market is pricing more on FED dovish policy to behold and it will put the Dollar under pressure. All these together stopped the USDCAD uptrend changed the direction to fall back under 1.2700 from its four-day high of 1.2708. 


In addition, US PCE Inflation and Canadian raw material prices index also will be eyed. However, FED chair speech will affect everything. 


From the technical point of view, we have two strong support as you can see in the bellow figure, 1.2640 and then 1.290 that trading above these levels will hold the asset in the clear uptrend, however, if the first support breaches, we have to think twice before opening any new position. In both H1 and H4 charts, we can see the RSI at 60 and 55, supporting the current bullish trend. In the uptrend, 1.2730 is the key resistance, and breathing above this level, will open the doors for 1.28 area. 


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