USDCAD Rises But Meets Resistance as Crude Falls

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Written By: Eno Eteng (MSTA)

Jul 18, 2019, 16:51 BST 16:51

Summary:

USDCAD resistance at 1.30937 holds firm. USSD starting to weaken again as Treasury Department reiterates rate stance at G7 meeting.

Crude oil prices fell below $55 today, causing a weakening of the Canadian Dollar. In yesterday’s piece, the USDCAD resistance level of 1.30937 was identified as a possible area to initiate shorts. The rally seems complete as USDCAD has now turned and is heading south as the Treasury Department has reiterated its rate stance in the G7 meetings in France.

A Reuters report has cited a spokeswoman of the US Treasury Department as saying that there have been no changes to the Treasury’s overall dollar policy. As long as the expectation for rate cuts by the Fed is in place, the logical play would be to look to short the USDCAD on rallies to possible resistance points, especially as this week has relatively few news releases for both currencies.Don’t miss a beat! Follow us on Twitter.

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Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.