USD/CAD – Grinding Higher as Virus Risk Renews Upside

The US Dollar rose against the Canadian Loonie to finish just above the 1.3600 mark. Higher oil prices kept the USD/CAD pair capped after a rise in risk aversion lifted the Greenback to 1.3616 overnight highs. Canadian economic data released yesterday mostly underwhelmed. The rise in new Covid-19 cases globally will weigh on the Loonie.

USD CAD DAILY FX 1H Chart - 19 June 2020
USD/CAD DAILY FX 1H Chart – 19 June 2020

USD/CAD has immediate resistance at 1.3620 followed by 1.3650 and 1.3700. Immediate support can be found at 1.3570 followed by 1.3520 and 1.3480. Canada’s Retail Sales report is due out today where falls are expected in both Headline and Core numbers. Any number that is worse than forecast will weigh on the Canadian Dollar. A good number will provide temporary reprieve.
Look to buy dips in a likely range today of 1.3575-1.3725.

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