USD/CAD Bounces Off MAs As Crude Oil Turns Bearish Again - Forex News by FX Leaders
The pullback down seems complete now on the daily chart

USD/CAD Bounces Off MAs As Crude Oil Turns Bearish Again

Posted Monday, February 24, 2020 by
Skerdian Meta • 1 min read

Crude Oil turned quite bearish on January, after tensions between US and Iran dissipated quite quickly, diminishing fears for a disruption of Oil production. The coronavirus added further fuels to the downtrend, as the sentiment turned negative and Chinese demand for Oil fell.

As a result, the CAD turned bearish, since it is closely correlated to Oil prices and USD/CAD turned quite bullish last month. US WTI crude broke below $50 earlier this month, but returned back up, climbing close to $55 last week, as coronavirus was being contained mainly inside China.

But, the outbreak of the virus in Italy over the weekend has turned the sentiment negative again and crude Oil has lost more than $3 today. USD/CAD has was finding support at the 20 SMA (grey) and the 100 SMA (green) on the daily chart, above 1.32 but has bounced around 100 pips higher today. So, buyers are back in control, although it remains to be sen whether they will push above the resistance zone around 1.3350.

 

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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