USD/CAD remains on track to close below 1.4100


  • USD/CAD falls for third straight day on Thursday.
  • WTI extends slide on demand concerns, trades below $23.
  • US Dollar Index drops to 99.50 on intensifying USD selloff.

After spending the first half of the day above the 1.42 handle, the USD/CAD pair turned south and touched its lowest level in more than a week at 1.4008 amid broad-based USD weakness. Although the pair recovered modestly on falling crude oil prices, it's still down 0.93% on the day at 1.4058 and remains on track to close in the negative territory for the third straight day.

USD weakness remains the main market theme

Despite the unprecedented increase seen in the US weekly Initial Jobless Claims, the market sentiment remained positive during the American session as investors continued to cheer the $2 trillion fiscal stimulus package. The US Dollar Index (DXY), which erased 1.5% in the last two days, continued to push lower to allow the bearish pressure to remain intact. At the moment, the DXY is down 1.5% on a daily basis at 99.45.

The US Department of Labor reported that Initial Claims for unemployment benefits in the US jumped to 3,283,000 for the week ending March 21 from 282,000 in the previous week.

On the other hand, the dismal global energy demand outlook due to worldwide lockdowns continue to weigh on crude oil prices. With the barrel of West Texas Intermediate erasing nearly 7% at $22.60 on Thursday, the CAD may have a difficult time preserving its strength against its rivals in the near-term.

Earlier in the day, head of the International Energy Agency (IEA) Fatih Birol said that the global crude oil demand could drop as much as 20%, or 20 million barrels per day, in 2020.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.4065
Today Daily Change -0.0127
Today Daily Change % -0.89
Today daily open 1.4192
 
Trends
Daily SMA20 1.3871
Daily SMA50 1.348
Daily SMA100 1.3323
Daily SMA200 1.3259
 
Levels
Previous Daily High 1.4484
Previous Daily Low 1.4178
Previous Weekly High 1.4668
Previous Weekly Low 1.3788
Previous Monthly High 1.3465
Previous Monthly Low 1.3202
Daily Fibonacci 38.2% 1.4295
Daily Fibonacci 61.8% 1.4367
Daily Pivot Point S1 1.4086
Daily Pivot Point S2 1.398
Daily Pivot Point S3 1.3781
Daily Pivot Point R1 1.4391
Daily Pivot Point R2 1.459
Daily Pivot Point R3 1.4696

 

 

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