USD/CAD Dynamics: A Bearish Tale Amid Crude Oil Retreat
USD/CAD Dynamics: A Bearish Tale Amid Crude Oil Retreat
The USD/CAD pair is painting a bearish picture as it hovers around 1.3385 during the European session on Monday. The Canadian Dollar (CAD) is facing downward pressure against the US Dollar (USD), mainly influenced by the decline in crude oil prices. Looking at the higher timeframe (H4), we see a bearish trend as the price stays below the 200 Moving Average. A dynamic trendline acts as a key player, orchestrating a series of downward movements with each touch. As the price nears the 50% and 61.8% Fibonacci area, a potential encounter with the Moving Average and the Dynamic trendline suggests a continuation of bearish trends. The Stochastic indicator supports this sentiment with a noticeable divergence.
Crude Oil's Downturn:
Against a backdrop of shifting dynamics, the West Texas Intermediate (WTI) price undergoes a downturn, trading near $73.00 per barrel as of this writing. The drop in crude oil prices, attributed to strategic price cuts by Saudi Arabia and an increase in oil output by the Organization of the Petroleum Exporting Countries and its allies (OPEC+), adds a layer of uncertainty to the commodity's once-prominent position.
Navigating Economic Crossroads:
In the maze of economic indicators, signals may seem confusing, highlighting the challenge of gauging the overall health of the economy. The upcoming Consumer Price Index (CPI) data, scheduled for release on Thursday, becomes a crucial guide for traders aiming to unravel the mysteries of the US economic landscape.
Our preference
Short positions below 1.3530 with targets at 1.3300 & 1.3200 in extension.
The USD/CAD pair is painting a bearish picture as it hovers around 1.3385 during the European session on Monday. The Canadian Dollar (CAD) is facing downward pressure against the US Dollar (USD), mainly influenced by the decline in crude oil prices. Looking at the higher timeframe (H4), we see a bearish trend as the price stays below the 200 Moving Average. A dynamic trendline acts as a key player, orchestrating a series of downward movements with each touch. As the price nears the 50% and 61.8% Fibonacci area, a potential encounter with the Moving Average and the Dynamic trendline suggests a continuation of bearish trends. The Stochastic indicator supports this sentiment with a noticeable divergence.
Crude Oil's Downturn:
Against a backdrop of shifting dynamics, the West Texas Intermediate (WTI) price undergoes a downturn, trading near $73.00 per barrel as of this writing. The drop in crude oil prices, attributed to strategic price cuts by Saudi Arabia and an increase in oil output by the Organization of the Petroleum Exporting Countries and its allies (OPEC+), adds a layer of uncertainty to the commodity's once-prominent position.
Navigating Economic Crossroads:
In the maze of economic indicators, signals may seem confusing, highlighting the challenge of gauging the overall health of the economy. The upcoming Consumer Price Index (CPI) data, scheduled for release on Thursday, becomes a crucial guide for traders aiming to unravel the mysteries of the US economic landscape.
Our preference
Short positions below 1.3530 with targets at 1.3300 & 1.3200 in extension.
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