⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

USD/CAD Tests Triple Bottom – Bearish Breakout in Place!

Posted Monday, January 4, 2021 by
Arslan Butt • 1 min read

The USD/CAD is trading bearishly at the 1.2695 level, as the US dollar is getting weaker, due to the increased numbers of COVID-19 cases. Canada counted an estimated 4,800 additional cases of the deadly coronavirus on Saturday, which sent the country’s total caseload to 586,425. After the holiday break, several provinces started reporting new coronavirus cases. In India, the total number of coronavirus cases reached 10,341,291, after 16,660 fresh cases were reported in just one day.

 

Given the rising number of coronavirus cases and restrictions in the country, in an effort to control the spread of the virus, Americans started flocking to Mexico, whether on vacation or to settle, in an attempt to avoid the limitations. In November, more than half a million Americans traveled to Mexico, which led to a surge in coronavirus cases in the country, with the authorities reporting new highs in daily cases in November and December.

 

The global count of coronavirus cases has reached 85,489,058, out of which 60,443,211 have recovered, and 1,850,202 have died so far. The number of cases in the United States has surpassed 21,110,917, and it remains the country worst-hit by the coronavirus. The rising number of coronavirus cases worldwide, despite the rollout of vaccines, has raised fears that countries will impose new lockdown restrictions that will negatively impact economic recovery. This pessimism in the market added to the appeal for safe-havens, which boosted the gold prices on Monday.

 

The USD/CAD pair may find support at 1.2695, and violation of this level could extend the selling tend until the 1.2637 level. The 50 EMA and RSI support a selling trend; thus, we have entered a sell trade in the USD/CAD. So far, it’s doing well, and all we need to do is move our stop loss at breakeven, after it enters the profit zone. Good luck!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments