Technical Analysis: USDCAD

USOIL plummeted by about 7%

On Monday, USOIL plummeted by about 7%. At one point, it came close to the US$92 mark and hit a two-week low.

The US and Iran were expected to reach a peace agreement

In principle, the US and Iran have reached an agreement that will end the war in the Middle East, US senior officials said on 24^th May, local time. It is said that the shipping through the Strait of Hormuz will resume in 30 days once the agreement is assigned.

The USDX was prone to fluctuation and fell

On Monday, the USDX was prone to fluctuation and fell. It ended down 0.35% at 98.97.

The bearish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, USOIL was prone to fluctuation and fell. The bearish market trend prevailed. In terms of technical indicators, KDJ went downwards after death cross occurred, showing that USOIL will fall further. Investors should focus on whether USOIL will break through the support at 89.5. It will decline with potential support at 87.0 if it breaks below 89.5.

4-hour chart

On the 4-hour chart, USOIL was prone to fluctuation and fell. The bearish market trend prevailed. In terms of technical indicators, MACD went downwards after death cross occurred, showing that the market trend is bearish. Investors should focus on whether USOIL will break through the resistance at 98.0. It will decline if it rebounds but is capped at 98.0.

Key resistance: 98.0,102.6

Key support: 89.5,87.0

Generally speaking, the bearish market trend prevailed in the short term. Investors could sell as USOIL rebounds during the day.