The USD/CAD pair was closed at 1.40160 after placing a high of 1.40424 and a low of 1.39000. Overall the movement of the USD/CAD pair remained bullish throughout the day.
The USD/CAD pair posted gains on Monday after falling for the past 2 trading days. The decreased crude oil prices on Monday caused the CAD to outperform its rival currency US dollar and raised the USD/CAD pair.
In the past week, the WTI crude oil prices were supported by the heightened hopes of recovery in global energy demand amid the easing of coronavirus induced lockdowns from across the globe.
The barrel of WTI crude oil rose almost 30% last week, which is the largest weekly gain of the year. However, the cautious market mood on Monday dragged down the WTI crude prices by 3.5% to 25.20$.
During the Asian session, bullish bias was dominating the USD/CAD prices as these lead the pair towards the next resistance level of 1.4100. On the 4 hour timeframe, the USD/CAD pair managed to crossover the 50 EMA and has closed bullish candles above the EMA support level of 1.4000.
On the higher side, the USD/CAD prices may lead the pair towards the next resistance level of 1.4100, but currently, the pair is retracing back and it may test the support area of 1.4000 level. But I case, the pair manages to close below 1.4000 level, our signal will be at risk of hitting the stop loss. Let’s see how it goes.
Entry Price: Buy at 1.40494
Take Profit 1.40994
Stop Loss 1.39994
Profit & Loss Per Standard Lot = -$500/+$500
Profit & Loss Per Micro Lot = -$50/+$50