USD/CAD – Reverses, Oil Price Slide Fears Weigh, 1.40-1.43 Likely

The US Dollar soared against the Canadian Loonie following another fall in Oil prices with Brent slipping 5.68% to USD 30.30. OPEC’s weekend historic production cut agreement was the deepest ever but fell short of expectations. A global demand glut, unprecedented due to the coronavirus outbreak kept oil prices pressurised. While the Bank of Canada held interest rates steady, it maintained a dovish stance. According to a Reuters report the BOC added provincial and corporate bonds to its QE program, and said “it stands ready to adjust the scale or duration of its program if necessary.”

Live Charts USD CAD H1 Chart - 16 April 2020
Live Charts USD CAD H1 Chart – 16 April 2020

USD/CAD traded to an overnight low at 1.38763 before reversing sharply higher in volatile trade to 1.41324 before easing to settle at 1.4107 at the New York close. USD/CAD has immediate resistance at 1.4150 followed by 1.4200. A break above 1.4200 could see us back to 1.4300. Immediate support can be found at 1.4080, 1.4020 and 1.3980. Look for a high volatile trading range between 1.40 and 1.4300. Prefer to buy USD dips toward 1.4000 with oil prices looking shaky.


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