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USD/CAD: down to key support on oil investories

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - USD/CAD has felt some supply with oil jumping 4% on inventories and is trading at the lowest point since 18th December. USD/CAD has printed a high of 1.3944 and a low of 1.3856 while spot oscillates around 1.3875 at time of writing.

    "February West Texas Intermediate oil futures on the New York Mercantile Exchange spiked more than 4% to a high of $37.73 a barrel. Despite recent recovery, WTI futures were down by over 30% so far this year", noted Ani Salama is an Economist specialized in financial markets and statistics analysis and she is the head of the FXStreet American team.

    The subject of oil for 2016 was discussed when FXStreet hosted a special event about what 2016 might hold for the Forex traders. The panelists were Ashraf Laidi, Boris Schlossberg, Adam Button and Valeria Bednarik. Today, we want to share with you the recording of the whole show. Watch now and look out for commentary around de-pegging pertro-dollars, oil prices and the black swan event.

    USD/CAD price action and levels

    In respect of expected price action until 2016, analysts at Scotiabank explained that Absent a push higher today to retest the 1.40 area, spot may ease back to the mid 1.38 area ahead of New Year. "The broader trend is positive though and we continue to think that minor dips are a buy."

    Meanwhile, RSI on the 1hr is well into oversold territory and the price has met the last lows at 1.3854. Some consolidation might be expected although the 200 SMA is within range at 1.3838 on the same time frame and the 16th Dec highs at 1.3846 at the pivot of 1.3942. S1 is 1.3912, S2 at 1.3886 guarding the mid point and support of the 1.38 handle.
    For more information, read our latest forex news.
     

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