USD/CAD Traders Will Make Big Profits Yesterday If They Can Impact These Factors Earlier

thecekodok

 Eh, why did the USD/CAD price chart yesterday drop to the latest lows?


Previously, the price movements for the USD and the Canadian dollar were quite volatile and it was difficult to find a clear direction as they both moved on par after the war between Russia and Ukraine broke out.


This is because the US dollar will strengthen as a safe-haven currency that attracts investors in a risky market environment.


Meanwhile, concerns over the disruption of global crude oil supply pushed up oil prices and increased the value of the Canadian dollar in the market as crude oil was Canada's main export.


Due to those factors, petroleum exporting countries (OPEC+) have agreed to increase production to 400,000 barrels a day in April.


Yet in Wednesday’s trading yesterday, market sentiment that slightly eased from previous risks has prompted a re -depreciation of the US dollar.


While the focus of yesterday’s New York session was the outcome of the Bank of Canada (BOC) meeting which saw interest rates rise to 0.50% from 0.25% previously, supporting the strengthening of the Loonie currency.



Thus, investors got a clear directional signal on the USD/CAD chart to continue the continued decline until today's trading (Thursday).


Recording the latest 5 -week low, the price hovered in the support zone of 1.26000 at the beginning of the European session today with the expectation that the price decline will continue.


The decline beyond the 1.26000 zone is seen to target the 1.25000 zone after the price first tested the level around 1.25600 which was previously the price support zone in the last week of January.


However, if the price movement situation starts to change, the upside is seen to test the initial resistance at the 1.26700 zone and also test the Moving Average 50 (MA50) resistance level on the 1 -hour time frame on the USD/CAD chart to detect the initial trend change.


For the expectation of a bullish trend movement of the price again, the zone around 1.27700 will be the focus first before the price is driven higher towards the resistance zone of 1.29000.