- USD/CAD stalled its retracement slide from two-week tops and bounce off the 1.40 mark.
- The ongoing downward spiral in oil prices undermined the loonie and remained supportive.
- A sudden pickup in the USD demand provided an additional boost to the intraday move up.
The USD/CAD pair managed to recover around 90 pips from session lows and is currently placed near the top end of its daily trading range, around the 1.4100 mark.
The pair stalled its retracement slide from two-week tops and found a decent support near the key 1.40 psychological mark amid a fresh leg down in crude oil prices, which undermined demand for the commodity-linked currency – the loonie.
Despite the latest optimism over the treatment for COVID-19 virus and indications by the US President Donald Trump to reopen the economy, oil nosedived to fresh 18-year lows amid growing concerns about collapsing global demand.
The pair’s sharp intraday turnaround could further be attributed to the emergence of some fresh buying interest around the US dollar, which reversed an early dip and has now turned positive for the third consecutive session.
It will now be interesting to see if the pair is able to capitalize on the momentum or runs into some fresh supply at higher levels. The focus remains on developments surrounding the coronavirus saga amid absent relevant market-moving economic data.
Technical levels to watch
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