USDCAD is under selling pressure today as the crude oil price rebound from yesterday’s heavy losses and as of writing the WTI brent is trading 9.22% higher at 34.02 per barrel. Canadian dollar was under heavy selling pressure as the crude oil price hit the lowest level since 2016.
On the economic data front the United States Redbook Index (MoM) came in at -0.1% in March 6, the yearly Redbook Index climbed from 5.9% to 6%. The NFIB Business Optimism Index came in at 104.5 in line with expectations.
Federal Reserve cut rates by 50 basis points the previous week in emergency move in an effort to offset the coronavirus outbreak impact. President Trump will announce later today, a relief package that include a payroll tax cut in respone to the evolving risk from the virus outbreak.
Read our Best Trading Ideas for 2020.
USDCAD Technical Levels To Watch
The USDCAD is 0.14% lower at 1.3680 as the pair retreats from 33-month highs that hit yesterday after the crude oil selloff. The pair yesterday started with a huge gap up as the rally that started in 2020 is gaining momentum. The technical outlook is bullish for the pair despite today’s pullback.
On the downside, first support for the USDCAD pair seen at 1.3609 the daily low. If the USDCAD pair breaks below, the next support level will be met at 1.3516 the low from yesterday’s trading session. In case the correction continues then the next target will be met at 1.3438 the high from March 6th and the gap up from yesterday will be closed.
On the other hand, first resistance stands at 1.3708 the daily top. In case of a move higher, the next hurdle is at 1.3759 the high from yesterday’s trading session. Next level for bulls is at 1.3796 the high from May 5th 2017.
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