USDCAD trades 0.13% higher at 1.2991 as the USD recovers from steep losses during the last trading session of 2019. In a quiet economic calendar, invetors focus is in the signing ceremony of the phase one trade deal on January 15th. The United States Initial Jobless Claims came in at 222,000 below the forecasts of 225,000 in December. The U.S. Challenger Job Cuts dropped to 32.843K in December from the previous 44.569K reading.
The crude oil price hovers close to three-month highs at $61.10 and that provides some kind of support to Canadian Dollar.
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USDCAD Outlook is Bearish
USDCAD finished 4.67% lower in 2019 amid crude oil strength that boosted the Loonie. The pair managed to rebound today from two-month lows amid general USD dollar strength.
On the upside, initial resistance for USDCAD stands at 1.3007 the daily top. Bulls need to recapture the high from the last trading session of the year at 1.3066. A move above the 50-day moving average at 1.3181 might cancel the December bearish momentum.
On the flip side, first support for USDCAD stands at 1.2968 the daily low. If the bears break below that support level the next target is at 1.2950 the low from December 31st. We have to go back to October 14th 2018, to meet the next support level at 1.2915.
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