USD/CAD – Bid, but Struggling to Breach 2016 Highs

The USD/CAD continued to climb and trade near 2016 highs. Last night USD/CAD traded to 1.4560 before easing to 1.4535 in late New York on the overall weaker US Dollar. The Dollar slipped further in early Asia to 1.4485. The Loonie was the worst performing currency among the Majors. Short term USD demand kept the Canadian Dollar under pressure. A summary in the IG Client Sentiment report saw traders net short USD/CAD. The USD/CAD move higher in the past week has been due to short covering. This may have run its course and the USD/CAD may soon reverse lower.

USDCAD DAILY CHART - Daily FX - 24 March 2020
USDCAD DAILY CHART – Daily FX – 24 March 2020

USD/CAD has immediate resistance at 1.4550-65 which will be difficult to breach under the current circumstances of an overall weaker US Dollar. Further resistance lies at 1.4670. Immediate support can be found at 1.4460 and 1.4400. The next support level can be found at 1.4300. Look for a likely range today of 1.4420-1.4550. Prefer to sell rallies as the US Dollar begins another corrective move lower.

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