USDCAD Hits Fresh Two-Month Lows on USD Weakness

USDCAD is under selling pressure for the third trading session in a row amid USD weakness across the board. The US Trade deficit dropped to $63.19 billion in November more than analysts expectations of  $68.75 billion. The U.S. Wholesale Inventories came in at 0% below the forecasts of 0.3%.

The crude oil price trades close to two-month highs and that provides help to Canadian Dollar.

The Bank Of Canada in its last policy meeting kept it’s benchmark interest rates steady as expected by economists. The interest rate now stands at 2% and the deposit rate is 1.5%.

Read our Best Trading Ideas for 2020.

USDCAD Bears in Control

USDCAD continues the downtrend which started in early December and today making fresh two month lows as the pair gives up 0.10% at 1.3065 hovering closed to daily lows.

On the downside, immediate support for USDCAD stands at 1.3058 the daily low. A break below that support level will open the way for a move down to 1.3041 the low from 29th October.  More bids might await at 1.3015 the low from July 14th.

On the upside, first resistance for the pair will be met at 1.3084 the daily high. Next level for bulls to watch on the upside is the high from December 26 at 1.3160. In case that the pair breaks above the next supply zone stand at 1.3185 the 50-day moving average.

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

More content