Selling USD/CAD, As Oil Holds on to Gains Near the Top

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.

ABOUT THE AUTHOR See More

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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