Tightening OIL Supply Could Push USDCAD To 1.25000!
With the RUSSIAN-UKRAINE Crisis hitting the market hard, the safehaven currencies such as the USD, JPY & CHF have been gaining grounds against their counterparts. In such scenario GOLD has also been appreciating as well due to its obvious safehaven demand. Furthermore, OIL has been appreciating as well but not as a safehaven!
OIL has been appreciating simply because of the tightening demand as the world gets ready to impose strict sanctions against Russia. Due to this the supply will likely be reduced thus driving the OIL price higher.
SO WHAT HAS USDCAD TO DO WITH ALL THIS?
Canada being a major OIL exporting player globally, its all simple. With the demand for OIL likely to rise soon, CANADA could soon start to increase their OIL exports to meet the demand. Due to this the CANADIAN DOLLAR would likely appreciate against most currencies!
BASED ON TECHNICAL ANALYSIS OF USDCAD
So with fundamental factors in favor of CAD, the technical picture is still developing. Have a look at the main chart to have a better understanding. The rising trendline needs to break in either two likely scenario. Once this happens we can expect the price to start inching closer to the next psychological support at 1.25000 level!
Trade with confirmation with the market gives you. do not rush into decisions. cheers
OIL has been appreciating simply because of the tightening demand as the world gets ready to impose strict sanctions against Russia. Due to this the supply will likely be reduced thus driving the OIL price higher.
SO WHAT HAS USDCAD TO DO WITH ALL THIS?
Canada being a major OIL exporting player globally, its all simple. With the demand for OIL likely to rise soon, CANADA could soon start to increase their OIL exports to meet the demand. Due to this the CANADIAN DOLLAR would likely appreciate against most currencies!
BASED ON TECHNICAL ANALYSIS OF USDCAD
So with fundamental factors in favor of CAD, the technical picture is still developing. Have a look at the main chart to have a better understanding. The rising trendline needs to break in either two likely scenario. Once this happens we can expect the price to start inching closer to the next psychological support at 1.25000 level!
Trade with confirmation with the market gives you. do not rush into decisions. cheers
