USDCAD gives up gains after worse than expected initial jobless claims. The U.S. Jobless Claims came in at 5245K above the market consensus of 5105K in the week of April 10. The total number of jobless claims that the last three weeks have surpassed 15 million. The Initial Jobless Claims 4-week average came up to 5508.5K on April 10 from the previous 4265.5K. The U.S. Building Permits Change dipped to -6.8% in March from the previous -5.5%, while the Housing Starts came in at 1.216M below the expectations of 1.3M in March. The Philadelphia Fed Manufacturing Survey registered at -56.6, well below the expectations of -30 in April.
On the other hand, Canada Manufacturing Sales came in at 0.5% topping the expectations of -0.1% in February. The disappointment came from the ADP Employment Change, which dropped to -177.3K in March from the previous 7.2K.
The Canadian loonie helped by the reversal in crude oil price, as it trades 1.76% higher at $20.23 per barrel, although OPEC in its monthly report lowered its forecast for world oil demand by 6.9 million barrels per day due to the coronavirus outbreak impact on the global economy.
Download our Q2 Market Global Market Outlook
USDCAD Price Technical Analysis
The USDCAD is 0.20% lower at 1.4087, giving up some of yesterday’s sharp gains. The correction from the four-year highs stalled yesterday at 1.3880. The technical outlook remains bullish despite the last two weeks pullback from the recent highs, and higher levels might be on the card.
On the downside, first support for USDCAD stands at 1.4062 the daily low. If USDCAD breaks below, the next support will be met at 1.3880 the low from yesterday’s trading session. Next level to watch is at 1.3757 the 50-day moving average.
On the other hand, the initial resistance for USDCAD stands at 1.4136 the daily top. If USDCAD breaks higher, the next resistance level will be met at 1.4263 the high from April 6. If USDCAD continues higher, the next hurdle stands at 1.4348 the high from March 31.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Nikolas on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.