The USDCAD have the extremist spikes among all pairs, as it wasn’t only affected by the Corona Virus fears but also the oil crises as well. The Canadian Dollar is highly affected by the price of oil when oil goes up the Canadian Dollar goes up and vice versa.
Moving to technical analysis, we have extreme spikes that obeys no rule of price action. We have nothing except that Triangle formation that we need to wait for a break through to trade.
The most likely scenario is a bearish break. That suggestion is based on Fundamental Analysis as Saudi Arabia and Russia had finally agreed to reduce their oil production also OPIC had mentioned they would do the same. That will lead to a bullish movement on oil and Sequentially the Canadian Dollar. On the other hand, we still have the Corona Virus fears bushing the US economy down as the US have the largest no. of infections and the highest rate of infection per day.
Therefore, we will short the pair after the break of the Triangle formation. For a more safe entry, you can wait for a retest of the lower edge of the Triangle formation.
Moving to technical analysis, we have extreme spikes that obeys no rule of price action. We have nothing except that Triangle formation that we need to wait for a break through to trade.
The most likely scenario is a bearish break. That suggestion is based on Fundamental Analysis as Saudi Arabia and Russia had finally agreed to reduce their oil production also OPIC had mentioned they would do the same. That will lead to a bullish movement on oil and Sequentially the Canadian Dollar. On the other hand, we still have the Corona Virus fears bushing the US economy down as the US have the largest no. of infections and the highest rate of infection per day.
Therefore, we will short the pair after the break of the Triangle formation. For a more safe entry, you can wait for a retest of the lower edge of the Triangle formation.