USDCAD pares early losses as the crude oil price slumps to $21.39. The United States Redbook Index dipped to -8.3% on April 10, from the previous 0.9%, the yearly reading came down to -2% from previous 5.3%. The U.S. Export Price Index came in at -1.6% better than expectations of -1.9% in March. The Import Price Index came in at -4.1%, below the forecasts of -2.2%.
Weak employment data from the USA the previous week pressured the greenback. Investors await the Bank of Canada monetary policy decision on Wednesday with most analysts expecting to keep interest rates unchanged.
USDCAD correction from recent highs stalled today below the 1.39 mark as the initial optimism on crude oil production cuts fade away amid the severe impact on global demand due to coronavirus outbreak.
The USDCAD is 0.01% higher at 1.3902 after it managed to rebound from three-week lows. The technical picture has deteriorated in the short term as the pair makes consecutive lower lows and lower highs. The long term outlook remains bullish as long as the pair trades above the 50-day moving average.
On the upside, the first resistance for USDCAD pair stands at 1.3925 the daily top. If USDCAD breaks higher, the next resistance level will be met at 1.40 the high from Monday’s, session. If the pair continues higher, the next obstacle stands at 1.4079 the high from April 9.
On the other side, first support for USDCAD stands at 1.3862 the daily low. If USDCAD breaks below, the next support will be met at 1.3725 the 50-day moving average. Next support zone is at 1.3675 the low from March 11.