USDCAD: Loonie eases in risk-off trading

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.

Author

Axiory Global Research Team

Axiory Global Ltd.

Axiory Global Ltd. is a Forex broker that is trying to change rigid principles in the financial sector by a constant process of innovation. Since its beginning in 2011, the mission of Axiory Global Ltd.

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