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  • USD/CAD lacked any firm directional bias amid a combination of diverging forces.
  • The USD remained well supported by persistent worries about the coronavirus crisis.
  • A modest pickup in oil prices undermined the loonie and kept a lid on any strong gains.

The USD/CAD pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the early European session.

A combination of diverging factors failed to provide any meaningful impetus, or assist the pair to build on the previous day’s strong intraday rally of over 250 pips and led to a subdued/consolidative price action on Thursday.

The US dollar remained well supported by its status as the global reserve currency, especially after Wednesday’s US economic data illustrated the severity of the collapse in the economic activity in the wake of the coronavirus pandemic.

The negative factor, to some extent, was negated by a modest pickup in crude oil prices, which extended some support to the dollar-denominated commodity – the loonie – and kept a lid on any meaningful gains for the major.

Investors also seemed reluctant to place any aggressive bets, rather preferred to wait for additional clues that the coronavirus pandemic might be reaching its peak soon before positioning for the pair’s next leg of a directional move.

Moving ahead, market participants now look forward to the release of the US initial weekly jobless claims, which might influence the USD price dynamics and produce some meaningful trading opportunities later during the early North-American session.

Technical levels to watch