CAD Might Weaken As Oil Market Plunges

CAD Might Weaken As Oil Market Plunges

2023-03-28 • Updated

Futures for Canada's main stock index rose on Monday, following positive global markets and gains in crude oil prices. First Citizens BancShares Inc's announcement of purchasing the loans and deposits of failed Silicon Valley Bank also boosted investor confidence in the global financial system. As a result, March futures on the S&P/TSX index were up 0.4% earlier, while crude oil prices gained more than 1%. We need to however evaluate the possibility of a sustained increase or a return to the bearish movement.



The Daily timeframe of USDCAD is currently showing signs of bullish strength. The Moving Averages are positioned in a way that indicates a bullish trend, with the 50-Day MA within reach as an area of support. To further strengthen the bullish sentiment, we also have the Fibonacci retracement levels, the drop-base-rally demand zone, and the break of the previous high at the 1.36700 area.

Analysts Expectations: 

Direction: Bullish

Target: 1.39300

Invalidation: 1.35600



NZDCAD is currently trading inside a descending channel and has recently been rejected from the resistance trendline of the channel. The 50 and 100-day MAs are the only things that stand between where price is at the moment, and where I expect it to go in a few days. Once price breaks through the support trendline, and the 100-Day MA, it would sail very quickly toward the 200-Day MA.

Analysts Expectations: 

Direction: Bearish

Target: 0.83000

Invalidation: 0.85800



CADJPY has made an initial reaction away from the pivot zone marked by the rectangle. It also seems to have filled the volatility gap from the opening of the new week yesterday. Based on the 76% of the Fibonacci retracement, the trendline resistance, and the Moving Averages, it is safe to expect a bearish reaction from the markets.

Analysts’ Expectations: 

Direction: Bearish

Target: 94.400

Invalidation: 97.300



After breaking below the trendline support of the ascending channel, price can be currently considered as making a bullish retracement into the Bearish Order block (supply zone) in order to find the required liquidity and momentum to push lower.

Analysts’ Expectations: 

Direction: Bearish

Target: 0.90600

Invalidation: 0.91505


The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.


You can access more of such trade ideas and prompt market updates on the telegram channel.


CAD: Markets Await GDP Release
CAD: Markets Await GDP Release

During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...

Trade of The Week: AUDNZD Trade Breakdown
Trade of The Week: AUDNZD Trade Breakdown

The Australian Dollar (AUD) rebounds on Monday, despite a slight dip in the US Dollar (USD) and higher US Treasury yields. Investors are eyeing Australian monthly Consumer Price Index (CPI) data for February and US Gross Domestic Product (GDP) for Q4 2023. The AUD gains momentum as the ASX 200 Index rises, especially in mining and energy sectors. Additionally, the Aussie...

XAUUSD: Markets Slow Down Ahead of NFP
XAUUSD: Markets Slow Down Ahead of NFP

Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...

Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera