USDCAD trades sharply lower on early American session as optimism about the reopening of the economy boosts risky assets and shifts investors attention away from the USD safe haven.
On the data front, United States Case-Shiller Home Price Index came in at 3.9% topping the expectations of 3.4% in March. The Housing Price Index registered in at 0.1%, below the market consensus of 0.3%. The Chicago Fed National Activity Index plunged to -16.74 in April from previous -4.19.
The Canadian Loonie is getting a hand by the higher crude oil price. The WTI crude oil price is 1.44% higher at 34.50, making fresh two month highs. The Brent crude oil price is 1.57% higher at 36.03%, also making fresh two month highs.
The USDCAD is 1.13% lower at 1.3827, hitting the lowest level since March 16 as the pressure in USD accelerates in early U.S. trading session. The technical outlook is positive now for the short term as the pair trades below the 50-day moving average. However, the long term picture remains bullish for USDCAD as long as the pair holds above the 100-day moving average.
On the downside, initial support for USDCAD stands at 1.3811 the daily low (lower low). If the pair breaks below 1.3811, the next support will be met at 1.3781 the low from March 13. The next target for bears is at 1.3696 the 100-day moving average.
On the flip side, the immediate resistance for USDCAD stands at 1.3985 the daily high. If the pair breaks higher, the next hurdle will be met at 1.4051 the high from May 22. In case the bullish momentum persists, the next resistance stands at 1.4078 the 50-day moving average.