OPEC+ announces production cut, USDCAD tumbles further.
“Surprise oil cut from OPEC+ tampered US dollar’s performance with the market focus shifted towards Canadian dollar instead.”
USDCAD extended its previous retracement during the Asian trading session, buoyed by the recent announcement from OPEC. According to the report, OPEC+ announced to cut their oil production further by 1.16 million barrels per day, with the current total of oil cut amounting to 3.66 million barrels per day. Following the announcement, the US dollar experienced a major selloff, with assets flowing into the Canadian dollar. It is worth noting that Canada is one of the major oil exporting countries, and higher oil prices would normally support their currency.
USDCAD, Daily: USDCAD tumbles as it retraces from the previous high at 1.3880. MACD which shows persistent bearish momentum suggests the pair extended its losses after closing below 1.3500.
Resistance level: 1.3700, 1.3880
Support level: 1.3500, 1.3240
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