USDCAD technical analysis 04.02.2020

The pair is in a short-term uptrend amid the falling crude oil prices as a significant decrease in oil demand is expected in China due to the economic slowdown caused by the new coronavirus. If oil prices remain under pressure, this will also have a negative impact on the Canadian currency.

The price is above the middle Bollinger band, at SMA 5 and above SMA 14. RSI turns down in the overbought zone. Stoch are also in this zone.

Trading recommendations:

The pair may correct down to the level of 1.3235 before continuing with a possible increase to 1.3330.