USDCAD forecast for 13 November 13, 2020
In the last few days, the dollar has consolidated after the election and the news about the new vaccine’s success against Coronavirus. Looking at the chart, we will see support below at 1.30000, more psychological than technical support.
The dollar was also supported by economic news in the last few days and the Fed, leaving interest rates at the same level of 0.25%. Pharmacological companies that announced the vaccine by the end of the year postponed deliveries for the spring of next year, which gave investors a sign that they could invest in the dollar, at least in the short term, in the following period.
On the other hand, the Canadian dollar as a secondary currency in the financial market is in the background and is not so attractive to investors in these uncertain times.
Yesterday’s report on oil stocks, which gave us information that stocks have increased and that we will have such data in the coming period due to many European countries’ lockdown, pushed the Canadian dollar into an unfavorable market position, depriving it of strength against other currencies.
The number of newly infected in America has risen above 140,000 and sets new records in new cases every day. Canada, which is in lockdown, also records a record number of new cases of Coronavirus.
Next week will be rich in Canada’s economic news when we can expect some major shifts in this currency pair. For the bullish scenario, the first support for USDCAD can be our MA50 indicator, the support zone around 1.31000;
The next one above shows the first resistance in MA100. If we manage to get through that, we can soon see 1.32000 to even 1.32500. For the bearish scenario, our obstacle is the zone around 1.31000 and MA50.
View original post