USD/CAD – Oh What A Night, Look for the Same, 1.42-1.45 Likely

“Oh, what a night.” The USD/CAD pair went Loonie, trading between an overnight low at 1.4150 and 1.4535 before slipping to settle at 1.4335 in New York. This morning, the risk-off stance saw USD/CAD jump to 1.4488. On Friday, Brent Crude Oil prices dip to USD 29.00 from Thursday’s USD 28.30.

USDCAD - 1H Chart - ForexLive - 23 March 2020
USDCAD – 1H Chart – ForexLive – 23 March 2020

USD/CAD has immediate resistance at 1.4525 followed by 1.4600. A break of 1.4600 could see 1.4670, highs reached on 19 March. Immediate support can be found at 1.4370 followed by 1.4330 and 1.4270. US 10-year bond yields on Friday plunged 29 basis points to 0.85%. Canada’s 10-year bond yield closed 13 basis points lower to 0.86%. That yield differential will favour the Loonie over its southern counterpart.

Look for a choppy trade, likely between 1.4320 and 1.4520. Prefer to sell rallies as the Covid-19 toll continues to surge in the U.S.

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