Thursday, November 12, 2020

USD / CAD Make 'Comeback' Again This Week

 Although market sentiment is now recovering with the good development of the Coronavirus vaccine, investors remain wary of increasing cases of Coronavirus infection, especially in the United States (US) and Europe.

Commodity trading returned to a gloomy after rising positive reactions following vaccine test reports earlier in the week.

Commodity currencies are beginning to show declines such as the Australian dollar, the New Zealand dollar and the Canadian dollar.

The Canadian dollar weakened after investors began to worry about the development of the crude oil market where the black commodity became Canada's main export.

While petroleum-producing countries (OPEC) are hoping to delay plans to loosen the reduction in crude oil production.

This will be a factor in the increase in oil prices. However, the growing number of new infections around the world is likely to give an impression of economic paralysis. Thus, the development of vaccines remains the focus to drive market sentiment.

If you look at the price movement on the USD / CAD currency pair chart, the price is showing an increase towards the SBR zone (support become resistance) 1.31000 after the horizontal movement of the price since last Tuesday.

Yesterday's price movement also signaled for a bullish trend after the one above the 1.30000 level moves above the Moving Average 50 (MA50) support level at the 1 hour price movement.

The start of today's European session saw the price continue to rise to the SBR zone of 1.31000 with the expectation that momentum will be maintained as the US dollar remains stable in the market.

A higher rise is seen to lead to the next focus zoom at 1.32000 before testing the 1.33000 zone.

However, if the price returns to the downtrend, the level of 1.30000 is seen as the price support level and if the price manages to break lower, the next target is likely to reach the latest low of 1.29000.