USDCAD makes fresh four-year highs as the demand for US dollars continue across the board. The global sell-off amid the coronavirus outbreak shift investors attention to safe haven assets such as dollar.
Fed cut the interest rates by 100 basis points to 0.0% – 0.25% and announced the intention to buy 700 billion of Treasuries and mortgage-backed securities. Crude oil, Canada’s main export product, trading slightly higher but failed to provide any significant support to Canadian Loonie.
On the economic data front, the United States Industrial Production came in at 0.6%, topping the expectations of 0.4% in February, the Capacity Utilization came in at 77% below the forecasts of 77.1%. The Redbook Index yearly reading increased to 8.5% in March 13 from previous 6%. Industrial Production increased by 0.6% beating the expectations of 0.4%. The United States Business Inventories came in at -0.1% in line with forecasts for January.
The USDCAD is 0.97% higher at 1.4155 close to daily highs showing that the buyers are in full control of the pair. The technical picture is bullish for USDCAD, and all the pullbacks look like a buying opportunity.
On the upside, first resistance for the pair stands at 1.4166 the daily top. In case of a move higher, the next hurdle will be met at 1.42 psychological mark.
On the other side, the initial support for the pair stands at 1.3960 the daily low. If USDCAD pair breaks below, the next support level will be met at 1.3723 the low from yesterday’s trading session. In case of a move lower, the next support will be met at 1.3680 the March 11th lows.