USDCAD extends yesterday’s losses to two-week lows amid general USD weakness as investors ignore the rising number of new coronavirus cases and focus on more risky assets while dumping USD which acted as a safe-haven asset during the pandemic.
On the data front, the U.S. Initial Jobless Claims came in at 1314K, slightly below the expectations of 1375K on July 3, and 99k lower than the previous week. The Continuing Jobless Claims registered in at 18.062M also below the forecasts of 18.95M on June 26, a drop of 698k from the previous reading. The Initial Jobless Claims 4-week average reported at 1437.25K for the week of July 3 below the previous week reading of 1503.75K.
In Canada, the Housing Starts seasonally adjusted came in at 211.7K, beating the expectations of 198K in June. The pair is clearly moving on the risk-on – risk-off changes while the rising crude oil prices continue to support the Canadian Loonie.
USDCAD Price Daily Technical Analysis
The USDCAD is 0.01% lower at 1.3510 testing the critical 200-day moving average, which if breached, could be the beginning of a sharp move lower. The negative momentum is intact for the pair, but a bounce from the 200-day moving average can’t be ruled out.
On the downside, the initial support for USDCAD stands at 1.3500 – 1.3490 the 200-day moving average and the daily low, respectively. If the pair breaks below 1.3490, the next support area will be met at 1.3400 the low from June 11. The next target for bears would be met at 1.3315 the low from June 10.
On the other side, the first resistance for USDCAD pair stands at 1.3525 the daily top. If USDCAD breaks higher, the next resistance zone will be met at 1.3617 the high from yesterday’s session. The next hurdle for the USDCAD pair is at 1.3725 the 50-day moving average.