The Canadian Dollar is currently trading at 57.30 against the Indian Rupee, up 0.28% with a YTD return of 4.60%. The currencies open rate was 57.46 compared to the previous close of 57.15. CAD/INR should stay between 57.30 and 57.46 today, the 52-week range is estimated to move between 51.07 and 57.93.
Since dipping to the 54.00 support level at the beginning of October, CAD has gained impressive strength, CAD/INR has managed to recover from the market drop in March which is a good sign for bulls moving into 2021.
The CAD/INR exchange rate has stayed within the 57.00 level throughout December; the last time the pair was trading at the 57.00 level was in October 2018 and only lasted for a few weeks. Some investors may hold a bearish stance until it is certain that the loonie is able to maintain long-term growth in the midst of COVID-vaccine distribution, new lockdown measures, and the new strain of the virus.
“With the holiday season upon the markets and diminishing trading volumes, the short term may continue to produce a test of values seen more than a month ago if behavioral sentiment losses additional optimism” according to DailyForex.
CAD/INR may follow bearish trends until the new strain of the coronavirus is better understood but “short-term bullish sentiment may prevail” which means traders will be watching closely to see if the pair is able to stay within the 57.00 level in the coming weeks.
By Surina Nath