Canadian Dollar Price Outlook: USD/CAD Continues to Test Support
Canadian Dollar (CAD) Price, Chart and Analysis
- USD/CAD back to support, aided by a marginal pick-up in the price of oil.
- Wednesday’s FOMC minutes will help decide the near-term future of the US dollar.
USD/CAD Hits a Two-Week Low
The Canadian Dollar continues its recent outperformance against the US dollar and is currently pressing down on a noted support zone. USD/CAD has turned lower after hitting a four-month high last week, helped by a small rally in the price of oil off its multi-month low. The price of oil however will remain under downside pressure, as investors fear that hit to the global economy from the coronavirus. The total number of people infected with the Chinese flu-like virus is now in excess of 71,00, with 1,770 fatalities recorded.
Looking ahead this week, USD/CAD traders should be aware of two important data events on Wednesday with the latest Canadian inflation data released at 13:30 GMT, while latest in the day the FOMC minutes will be released at 19:00 GMT. Both events can move USD/CAD.
For all market moving events and data releases, see the DailyFX Calendar.
The daily USD/CAD price chart shows the pair now trading below the 20-dma for the first time in over a month. This move lower highlights the current weakness in the pair although the CCI indicator does not fully confirm this. A break below the support-zone could see the pair fall back to the 200-day moving average, currently at 1.3188, and back at levels last seen six-weeks ago.
USD/CAD Daily Price Chart (June 2019 - February 17, 2020)
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