USD/CAD went through a major surge in March, as the USD gained a lot of attention as a world reserve currency, following the outbreak of coronavirus flu in Europe. The CAD also turned quite bearish as Crude Oil crashed lower, following the decline in demand for Oil.

So, this pair surged around 12 cents higher in less than two weeks to 1.47, but retreated lower since then. The price fell to 1.3850s, but stopped there and it seems like a bottom has been put in place for this pair. For more than a month, USD/CAD has been trading in a range, between that support zone and 1.4250s.

On Friday we saw a strong decline, but the decline stopped at 1.39 and yesterday this pair reversed higher, climbing to 1.4060s, as Crude Oil was retreating lower. But, today USD/CAD is retreating lower again, although the decline seems to have stopped at the 50 SMA (yellow). The pullback seems complete on the H1 chart now, so we decided to go long from here. Now let’s see if the pullback is really over.