USD / CAD video 10.04.20.
Canadian dollar continues to gain ground against US dollar
USD / CAD & nbsp;has a quiet trading session due to Good Friday. However, next week should be very interesting, as oil, which is one of the main catalysts for the Canadian dollar, will certainly be in motion. “Data-reactid =” 15 “> USD / CAD is having a quiet trading session due to Good Friday, but next week promises to be very interesting, as oil, which is one of the main catalysts for the Canadian dollar, will certainly be in motion.
accepted & nbsp;reduce oil production by 10 million barrels per day (b / d). In addition, OPEC + anticipates that other oil producers will join the effort and reduce their production by 5 million b / d. News on this front could arrive this weekend. “Data-reactid =” 16 “> OPEC + countries have agreed to reduce oil production by 10 million barrels per day (b / d). In addition, OPEC + expects other oil producers are joining the effort and cutting production by 5 million bpd. News about this could happen this weekend.
The Canadian dollar recently gained ground against the US dollar against the backdrop of a general weakness in the US dollar caused by an unprecedented monetary stimulus and general market optimism that supported riskier assets.
The US dollar continues to serve as a refuge of last resort, so good news is often bearish for the dollar while bad news is bullish.
Core inflation rate and Inflation rate for March. The core inflation rate was 2.1%, up from 2.4% in February. The inflation rate was 1.5%, compared to 2.3% in February. “Data-reactid =” 19 “> The United States today reported the core inflation rate and the inflation rate for March. The core inflation rate was 2.1% compared to 2.4% in February, with an inflation rate of 1.5% compared to 2.3% in February.
Both figures were lower than analysts’ consensus which predicted a base inflation rate of 2.3% and an inflation rate of 1.6%. Falling inflation suggests that the blow taken by the coronavirus containment measures has already been significant.
The USD / CAD remains below level 20 of the EMA at 1.4060 and attempts to approach the first major support level at 1.3925. The pair has already tried to test this level, but these attempts have failed.
However, the pair is getting closer to level day by day, and a test of 1.3925 seems imminent. If the USD / CAD manages to stabilize below 1.3925, it will probably develop a bearish momentum and quickly reach the 50 EMA level at 1.3850.
On the upside, the 20 EMA at 1.4060 is the first resistance for the USD / CAD. Like the support level at 1.3925, this level has also been tested several times, so the pair is currently trading in a rather narrow range.
If this resistance level is crossed higher, the USD / CAD will enter the range 1.4060 – 1.4260. The area near 1.4250 will likely serve as the major resistance level for the pair.
article was originally published on FX Empire “data-reactid =” 33 “> This article was originally published on FX Empire