USD/CAD likely to roll over once again despite recent rebound
Dollar strength has pushed USD/CAD into a confluence of resistance, yet the long-term downtrend and ongoing crude rally points towards another bearish turn from here.
Dollar gains look to falter as crude uptrend helps CAD
USD/CAD has been under pressure over the course of the past year, with the wider recovery for stocks and energy markets helping drive this pair lower. That has started to wane this week, with risk-off sentiment driving energy and equity markets lower. That helped push this pair up into the 61.8% Fibonacci resistance level. With the US jobs report seeing a blockbuster 379k payrolls figure, the desire for haven assets has also subsided somewhat to the detriment of the dollar. As such, the ongoing downtrend and current respect on trendline resistance highlights the potential for another bearish turn for this pair. With that in mind, further weakness looks likely unless we see price rise through the 1.2881 swing-high established in late-January.
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