USD/CAD keep falling. The breakdown seems to be milder than similar breakouts in other USD pairs. Given that the withdrawal of the support zone has triggered no less than four tests since the beginning of June, it makes sense for why sellers might boldly continue to drive at such a new recent low.
After the Canadian dollar strengthened in the previous day’s trading, the USD/CAD rebounded from range support. CAD rose after the Bank of Canada officials voted to maintain the benchmark interest rate at 0.25%. This pushed down the USD/CAD to the same range of support that had been used for a month; buyers reappeared, pushing up prices. Greater prospects-Due to the previous short-term trend (which appeared after the March high), the USD/CAD still shows a potential bearish trend. Although descending triangles are usually a continuous pattern, it is not uncommon to see descending triangles near the top of the market.
Prediction of Canadian dollar against the US dollar on June 29: the highest 0.745 and the lowest 0.723. On June 30: the highest of 0.747 and the lowest of 0.726. On July 1: the highest is 0.736 and the lowest is 0.714. On July 2: the highest 0.736 and the lowest 0.715. On July 3: The maximum of 0.734 and the minimum of 0.713.
USD to CAD fell below 1.341 and continued to drop. The latest support for USD to CAD is at 1.334. If the rate falls below this support level, it will keep going down and move towards the next support level of 1.321.
Due to increased demand for high-risk currencies, the USD/CAD has broken the support level at 1.373 and gained huge downward momentum. At this time, the recent support of USD/CAD is 1.357. In case the US dollar/Canadian dollar successfully falls below this support level, it will take the next support level at 1.350.
The Canadian dollar has been increasing since last week as oil price is getting stronger. Although Canada’s numbers are frustrating, the Canadian dollar has successfully maintained its position against the US dollar. However the outlook for the Canadian dollar is still negative in the near future, as consumer inflation fell 0.7% for the second consecutive month in April. Core CPI fell by 0.4%, the first decline in four months. In terms of labor, the number of ADP non-agricultural employment fell freely, at 226,700. Retail sales went south in March. Overall data fell by 10%, core data fell by 0.4%. Inflation and employment numbers were weak last week, and a decline in GDP in March could put pressure on the Canadian dollar.
As crude oil prices rise, the CAD is getting stronger steadily.
US Fed Chair Jerome Powell said today that due to Covid-19, US unemployment rate might peak in the coming month, and US Dollar rate remains highly uncertain, it may rise if the initial jobless claims data is higher than expected.
Australia dollar dives on Feb. 6
Canadian dollar slightly goes down with oil price