Crude Oil has been quite bullish for more than a year, since it reversed higher from $-37 in April last year, climbing more than $100 in total. The upside momentum in Oil has been keeping the CAD bullish during this time, sending USD/CAD more than 26 cents down.

Canada is a major Oil exporter, so Oil prices have a major effect on the price of the CAD, hence the downtrend in this pair. In April, USD/CAD consolidated about 5 cents higher, but the decline resumed again and it fell close to 1.20.

USD/CAD Live Chart

Moving averages have been doing a good job in keeping the trend bearish, providing resistance during the retraces higher, which have been quite weak to be honest, confirming the strong bearish momentum. We decided to open a sell forex signal a while ago, since buyers are finding resistance at the 50 SMA again, hoping for a rejection and a bearish reversal soon.