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  • US dollar has depreciated 2% this week to hit three-month lows at 1.3468
  • The pair is trying to find support at the 200-day SMA, at 1.3460 area. 

The US dollar has depreciated against its Canadian counterpart for the fourth consecutive day on Thursday, reaching fresh three-month lows at 1.3468. After having lost about 2% so far this week, the pair is now testing support at the 200-day SMA, around 1.3460, with RSI at oversold levels on the daily charts.

Upside attempts to regain lost ground have remained limited below 1.3540 with the greenback weighed by EUR/USD strength after the European Central Bank’s decision to increase its coronavirus recovery package beyond expectations.

On the other end, CAD demand has also been capped with oil prices stalled and Canadian trade balance figures showing downbear readings. The trade deficit widened to $3.3 billion in April as exports plunged by nearly 30% to their lowest level in 10 years.

On the downside, the mentioned 200-SMA at 1.3463 is guarding the path towards the 1.3420 level, which would close the March 3 to March 6 gap before March 3 low at 1.3320. On the upside, immediate resistance lies at 1.3540 intraday high, and above here, 1.3575 (Jun 3 high) and late 2018 highs at 1.3660.

 

USD/CAD daily chart

USDCAD daily chart

USD/CAD key levels to watch