The Canadian dollar remained at multi-month high levels against the US dollar after the new NAFTA deal was announced. Based on this, what is USDCAD next move? The following analysis reveals.
2 October, OctaFX – The Canadian dollar remained at multi-month high levels against the US dollar after the new NAFTA deal was announced. US President, Donald Trump, praised the ‘wonderful new trade deal’ stating how it was beneficial to US farmers and the auto sector.
He had previously described NAFTA as “the worst trade deal” ever signed and just last week it seemed that the US would move forward without Canada.
This new agreement will calm the markets as the confrontation with China continues. Traders hope that another deal will be made between the US and Japan and the European Union.
What is USDCAD Next Move?
The USDCAD pair is trading at 1.2803, which is close to yesterday’s close of 1.2800. This was the lowest the pair has fallen in four months. The Bears Power indicator has moved from a multi-month low to almost zero.
At the same time, the Bulls Power is close to zero. This is an indication that the bulls and bears are torn about the next moves for the pair. There is a likelihood that a small upward retracement will happen before the downward momentum continues.
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