Forecast of the USD / CAD currency pair 16/06/20

Today we will take a look at the USD / CAD currency pair. At the time of writing, the pair remained above the technical support area of ​​1.3510 / 25 and, as a result, above the psychological level of 1.3500. But a moderate recovery in oil prices continues to put pressure on the pair, so the risk of breaking through the marked support continues to increase.

Trading Outlook:

The main scenario remains in focus until the pair returns above 1.3600 and takes into account the breakthrough of support at 1.3510. The first goal remains 1.3430, but I also do not rule out the pair returning to 1.3330 and even to 1.3200. This scenario will be realized only if oil prices continue to rise.

The alternative scenario takes into account the breakthrough of resistance at 1.3600 and further growth to 1.3680-1.3700. A more powerful increase to 1.3800 is possible only if there is a significant reduction in oil prices in the short term.

An increase in oil prices is likely if we see a rise in business and consumer activity in a majority of countries. I’ll draw your attention to China as an example, which managed to reopen refineries, but the lack of consumer demand in Europe and the United States limits producers and, as a result, demand for oil remains restrained.

The above review is not a direct guide to action, but carries an exclusively recommendatory nature.