Axiory Global Research Team
Axiory Global Ltd.
Traders bought the greenback on Friday amid worsening situation with the coronavirus and the USDCAD pair was trading 0.20% higher, seen at around 1.3150.
Earlier in the day, Canadian retail sales for November improved notably to 0.9% month-on-month, up from -1.1% previously, but the ex-autos gauge failed to accelerate that much and jumped only to 0.2% (from -0.4% previously). The Loonie failed to appreciate after these results and remained flattish.
Moreover, the Canadian dollar seems undermined by the falling WTI prices as oil is now plunging nonstop and today it was down another 2%, trading at 54.60 USD, which are two-month lows for this commodity.
Globally, the situation regarding the coronavirus seems to be worsening as there are more and more cases showing up each day. A senator has reportedly told the press that the CDC is about to confirm a third case of coronavirus in the US. Unsurprisingly, stocks aren't taking the news too well.
Technically speaking, the resistance seems to be near the current cycle highs of 1.3170 and if the greenback pushes above this level, the 1.32 threshold could come under attack.
Alternatively, the support appears at 1.3120, which has already held today. If the USDCAD pair declines below this zone, we could see a drop toward 1.3090 in the initial reaction.
Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.
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