USDCAD after a weak start on Monday jumped higher despite the emergency rate cut by the Fed yesterday. Federal Reserve, in a surprising move, cut the interest rate by 100 basis points to 0.0%-0.25% in an attempt to combat the coronavirus outbreak. Meanwhile, the crude oil price resumed downtrend as the recession fears increase, and the price is 8.29% lower at $29.14.
On the technical analysis, the outlook is bullish as the pair trades above all major moving averages. Turbulence in the crude oil and stock markets is USD positive and higher levels would be possible. The first resistance for the pair stands at 1.3923 the daily high. The next hurdle to the upside would be me at 1.3994 the high from Friday’s trading session. On the other hand, immediate support for USDCAD will be met at 1.3724 today’s low. The next support zone stands at 1.3680 the low from March 11.