USDCAD Daily Outlook – Another week, another COVID-19-filled newsfeed and potentially more panic selling of financial assets as traders price in a recession. Last week a U.S. dollar funding crisis and fears of an economic collapse had traders grabbing as much USD as they could. What will happen this week?
We don’t have many noteworthy risk events on the economic calendar for Monday so the majority of trading will be Coronavirus-sentiment driven.
Today I’m looking at the USD/CAD pair which is trying hard to break above the key resistance level of 1.46. The pair has not been able to break above this level since 2003 and the last time it tested it was back in January 2016.
The USD/CAD pair is in an interesting position because not only the demand for USD is going higher, the Canadian dollar is getting dumped due to the oil price war between Saudi Arabia and Russia.
U.S. President Donald Trump is facing increasing calls from some U.S. senators and congressmen to pressure Saudi Arabia into ending the oil price war.
Now if that happens, there’s a chance that the key resistance level in USD/CAD holds.
Do you think the pair will break the resistance this week? Head over to the comments section and let me know!
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% and 70% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.