The USD/CAD continues its month long bout of range trading with the 4-week movement limited to 1.35-1.37 and the July action to an even narrower band of 1.35-1.36. Joseph Trevisani, an analyst at FXStreet, expects the loonie to stay within the range until the market clears up the impact of the current coronavirus outbreak.
“As the disease normally takes several weeks to produce a fatality, the next two weeks should begin to provide conclusive evidence if the current outbreak will strain the health care systems in the various states affected. If it does governors may be forced to order a second round of business shutdowns with all the accompanying economic damage. If it does not then the recovery should continue apace.”
“The constricted range trading of the last month will likely continue for a few more weeks as markets assess the economic danger from the current Covid outbreak.”
“The relative strength index is just below neutral as the USD/CAD is near the mid-point of its one month range. The moving averages have divided with the 100-day far above the market at 1.3833, the 21-day at the market at 1.3585 and the 200-day at 1.3505 offering additional support.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.