USD/CAD – Bounce in Oil Prevents Gains Above 1.4100, 1.40 Pivot

The Dollar eased against the Canadian Loonie to finish 0.25% lower to 1.4050 from 1.41095 yesterday. Rising crude Oil prices boosted the commodity-sensitive Loonie. West Texas Intermediate (WTI) oil soared 22.3% to US$26.25 (US$22.55). The easing of Covid-19 restrictions has fuelled much of oil’s recent rebound rally.

USDCAD - Royal Financial Trading H1 Chart - 06 May 2020
USDCAD – Royal Financial Trading H1 Chart – 06 May 2020

On Friday Canada reports its Payrolls data which is expected to see up to 5 million Canadians out of work from the previous month’s 1 million Jobless. Canada’s Unemployment rate is expected to soar to 20% from 7.8%. On Sunday, Canada appointed a new Governor, Tiff Macklem, who said that he cries out for bold, unprecedented responses to the economic crisis fuelled by Covid-19.

USD/CAD has immediate support at 1.4025 followed by 1.4000 (the pivot point is at 1.40). The next support level can be found at 1.3970. Immediate resistance can be found at 1.4100 followed by 1.4130. Look for a likely trading range today of 1.4020-1.4120. Prefer to buy USD/CAD dips toward 1.40 today.


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