This week we see the the CAD testing the 1.35 level again. It is the third time the CAD has reached this level this year.
This week oil prices dropped and the increase in production in the US in my opinion will start putting strain on the agreement with OPEC earlier this year possibly seeing oil fall even further. CAD is a commodity currency that relies on oil for its strength and the development this week alone is cause to look for a drop in the CAD price.
On the technical front we can see a triangle starting to form along with a turn in the STOCH and RSI/MACD approching a turning point.
I'll be looking for the CAD to fail at the 1.35 level and looking at it to return to the decision height of 1.35. In the unlikely event that oil prices recover and the CAD breaks out above the 1.350 level I would be looking for a decision height as high as 1.400
This week oil prices dropped and the increase in production in the US in my opinion will start putting strain on the agreement with OPEC earlier this year possibly seeing oil fall even further. CAD is a commodity currency that relies on oil for its strength and the development this week alone is cause to look for a drop in the CAD price.
On the technical front we can see a triangle starting to form along with a turn in the STOCH and RSI/MACD approching a turning point.
I'll be looking for the CAD to fail at the 1.35 level and looking at it to return to the decision height of 1.35. In the unlikely event that oil prices recover and the CAD breaks out above the 1.350 level I would be looking for a decision height as high as 1.400