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The USDCAD Growth has Stopped Under the Resistance Level of 1.3475

11/22/2022 12:05 PM

The USD/CAD pair rose to 1.3475 due to the weakness of the Canadian dollar as a result of the decline in the price of WTI Crude Oil, which has fallen from 94.00 dollars per barrel (November 7 high) to 75.80 dollars per barrel over the past two weeks, losing 19.4%.

Yesterday's fall in oil prices by 5% was due to reports from The Wall Street Journal that OPEC intends to increase production by 500.0K barrels per day to compensate for a possible decrease in supply in the European market, which representatives of the cartel later refuted. The asset returned to the opening of trading on Monday. As a result, the USD/CAD pair retreated from the resistance at 1.3475 and is preparing to continue the downtrend.

The long-term trend remains downwards. Yesterday traders unsuccessfully tested the resistance area 1.3530–1.3475. The probability of further decline to the support area of ​​1.3250–1.3200 remains, and after the breakdown of 1.3200, the negative dynamics may continue to 1.2970.

The medium-term trend is downwards. Last week, the trading instrument was moving within the upward correction, having reached yesterday the key trend resistance level of 1.3495–1.3471. The quotes failed to break the zone and reversed downwards to last week's low at 1.3230, in case of renewing of which zone 4 (1.3067–1.3045) will become the next sell target.

Resistance levels: 1.3475, 1.3530. | Support levels: 1.3250, 1.3200.

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