FXstreet.com (Córdoba) - The Canadian dollar managed to reverse losses versus the greenback on Monday, despite the negative tone seen in equities, as oil bounced off lows.
Despite the World Bank downgraded China's outlook, currencies linked to commodities accomplished modest gains versus the greenback with USD/CAD falling to a low of 0.9752 in recent dealings. At time of writing, USD/CAD is trading at the 0.9755 area, 0.2% below its opening price but still above its Friday's low of 0.9734.
From a technical view, "The larger picture shows the pair under pressure, as a part of broader downtrend from 1.0444, 04 June high, interrupted by 0.9631/0.9883, 14 Sep / 03 Oct corrective phase, where gains were capped by descending daily 55 day MA", says Slobodan Drvenica, analyst at Windsor Brokers Ltd. "Bearish tone on daily chart is increased by double death-cross of 55 and 90 day MA's over 200 day MA crossovers".
Despite the World Bank downgraded China's outlook, currencies linked to commodities accomplished modest gains versus the greenback with USD/CAD falling to a low of 0.9752 in recent dealings. At time of writing, USD/CAD is trading at the 0.9755 area, 0.2% below its opening price but still above its Friday's low of 0.9734.
From a technical view, "The larger picture shows the pair under pressure, as a part of broader downtrend from 1.0444, 04 June high, interrupted by 0.9631/0.9883, 14 Sep / 03 Oct corrective phase, where gains were capped by descending daily 55 day MA", says Slobodan Drvenica, analyst at Windsor Brokers Ltd. "Bearish tone on daily chart is increased by double death-cross of 55 and 90 day MA's over 200 day MA crossovers".
