USDCAD Hits Daily Lows Amid US Dollar Weakness


USDCAD correction continues for the third day in a row boosted today by a dramatic increase in the jobless claims, which hit the highest number even above the data from the 2008 financial crisis. The Initial Jobless Claims for March 20 week skyrocketed to 3,283,000 from 282,000 the previous week, reflecting the impact of the coronavirus spread on the economy.

The U.S. GDP came in at 2.1% in line with estimates for the fourth quarter. Core Personal Consumption Expenditures registered in at 1.3%, beating the forecasts of 1.2% in the 4Q. The United States Goods Trade Balance rose from previous $-65.5 billion to $-59.89 billion in February.

Read our Best Trading Ideas for 2020.

USDCAD Resistance and Support

The USDCAD is 1.15% lower at 1.402amid the dollar weakkkness after dismal jobs data, a huge relief package up to 2 trillion dollars, and an increase in the confirmed cases and deaths in the USA. The technical picture is still bullish despite the recent correction, as the pair exits the oversold area.

On the downside, immediate support for the pair stands at 1.4010 the daily low. If the pair breaks below, the next hurdle for bears will be met at 1.3961 the low from March 17th trading session. Next support area is at March 16th low at 1.3733.

On the flip side, the first resistance for USDCAD pair stands at 1.4275 the daily top. If the pair breaks higher, the next resistance level will be met at 1.4465 the high from March 25. In case of a bullish breakout, the next obstacle will be reached at 1.4526 the high from March 24th trading session.

Don’t miss a beat! Follow us on Telegram and Twitter.

More content