USD/CAD shows serious signs of weakness
The USD/CAD just made a strong rejection at a long-term lower high. Because of this failure, I'm expecting at least a return to the 50-line (average) marked on the chart by the purple line. Recent strength in commodity currencies (NOR/CAD/AUD/NZD) provides confluence for this.
> Numerous factors suggest that commodity-currencies (NOR/CAD/AUD/NZD) will do well against the USD and EUR for the foreseeable future:
1. Oil (CL) is at multi-year lows, trading as of this writing (April 2020) at around $20. This is likely a bottom. Countries which depend on Oil cannot sustain these oil prices.
2. The ECB and Fed. Reserve are pumping in MASSIVE amounts of liquidity to stabilize the credit markets (bonds/repo/etc.). All of this is only inflation. There's no economy to speak of at this time. And suggests that these currencies will face serious devaluation.
> Numerous factors suggest that commodity-currencies (NOR/CAD/AUD/NZD) will do well against the USD and EUR for the foreseeable future:
1. Oil (CL) is at multi-year lows, trading as of this writing (April 2020) at around $20. This is likely a bottom. Countries which depend on Oil cannot sustain these oil prices.
2. The ECB and Fed. Reserve are pumping in MASSIVE amounts of liquidity to stabilize the credit markets (bonds/repo/etc.). All of this is only inflation. There's no economy to speak of at this time. And suggests that these currencies will face serious devaluation.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.