Technical Analysis Post

Will Oil Turn Lower Again?

| 24 January, 2021 at 09:13 GMT

The USD is currently showing momentum again and it looks like it has found a bottom against the CAD. Having been lifted from the support area around 1.300 (psychological support) area, the greenback might now be looking to book more gains against the Loonie.

With the recent rise in oil as well markets on a surprise inventory drop, a stronger greenback may push the black gold back lower, especially as markets begin to lose faith in over-optimistic deadlines for a Covid-19 vaccine. The CAD could also weaken further and we would expect the market to grow momentum soon towards our target at around 1.32.