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Trader6127
Jul 1, 2019 12:28 PM

USD at strong support level against the CAD Long

U.S. DOLLAR / CANADIAN DOLLARICE

Description

The USD is currently sitting at a very strong support level against the CAD. EMA50 is also above EMA200 on the daily and weekly. Keep in mind that, technically, the pair is in a "no trade zone."

The Canadian economy is also experiencing a number of acute deteriorations vs. the US economy that could put pressure on bank balance sheets in Canada. Increasing non-performing loans in Canada could lead to currency devaluation. The Bank of Canada's inflation targeting also revolves, at least partially, around currency devaluation (a kind of "beggar thy neighbour").

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