USD/CAD – Downtrend Slows on Oil Slide, Risk-Off Boosts Retracement Up

The US Dollar halted its 4-day slide against the Canadian Loonie to close at 1.3408 (1.3414 yesterday), little changed, after hitting a near five-week low at 1.33511. Brent Crude and WTI Oil prices slid over 2% while risk aversion rose in the asset markets. Canada’s recent economic numbers have been mixed. This week saw a rise in inflation in the CPI report, but Core and Headline Retail Sales rises were underwhelming (lower than forecast). The market’s risk-off stance and lower oil prices will put a floor under the USD/CAD pair particularly given the fall in the Australian, New Zealand and Emerging Market currencies.

USDCAD Oanda-DailyFX 1H Chart - 24 July 2020
USDCAD Oanda-DailyFX 1H Chart – 24 July 2020

USD/CAD has immediate support at 1.3400 followed by 1.3370 and then 1.3350. Immediate resistance can be found at 1.3430, 1.3460 and then 1.3500. Look to buy any USD/CAD dips with a likely range today of 1.3390-1.3510 today.

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