CAD falling on weaker oil prices

The Canadian dollar has lost some ground recently as global oil prices started retreating from multiyear highs. As Canada´s economy depends much on oil prices, lower prices make the loonie (Canadian dollar´s nickname) lose value. Thus, the CADJPY has been falling, as investors prefer the Japanese yen as safe haven against the Canadian dollar. The course fell back from the upper boundary of the Bollinger band after forming a bearish engulfing pattern (C)  and is approaching the 20 moving average on the daily chart. The MACD indicator has also reached an oversold territory and is showing bearish signs at the moment.

The nearest support level could be around the 84.60 – 84.00 area (A), which is converging with the lower boundary of the Bollinger band. Further weakness could push the course to previous resistance turned into support around the 82.40 – 81.60 zone (B). In case of bullish run the course could test the previous high at point C.