According to analysts, the rapid growth of the Canadian dollar may soon come to an end. They stressed that its ceaseless rally already went too far and must inevitably undergo a correction.
Nevertheless, the USDCAD currency pair is still striving to conquer the top of support within 1.31. At the same time, the main focus is on the improved dynamics of crude oil. However, a possible decline in the value of the Canadian dollar may act as a signal to buy it, which will only make it stronger and higher in value in the future.
According to most analysts, in the short term, the USD/CAD currency pair will continue to consolidate at 1.3.
The Canadian dollar's positive rally was due primarily from the growth in the oil market, and also against the background of the growing appetite of investors for risky assets. Still, there is no need to talk about the continuation of these factors in the near future, since they are being replaced by a policy that is more balanced in relation to the localization of coronavirus infection. Market participants are beginning to closely monitor the growth in the number of new COVID patients in the world, which creates obstacles to the increase in the value of the Canadian dollar.
One way or another, the leveling of positive factors for the growth of the "loonie" will still force the bullish trend to curtail sharply. After some decline, the upward trend will return again. It is quite possible that the currency pair may even reach 1.37 in the current quarter. And in the future, the growth may eventually reach 1.4.
