USDCAD has settled in the upper 1.3300s after peaking at a two-week high at 1.3444 on Monday. Sputtering global stock markets and the associated concerns about global growth have undermined sentiment to the Canadian Dollar and its Dollar bloc brethren. Canada releases January trade data later today, which is expected to show the deficit narrowing to -C$3.0 bln from the -C$4.6 bln in December, which was the largest deficit on record. Exports are projected to recover with a 4.0% gain in January after the 3.8% drop in December as oil prices bounced in January after tumbling in December. The USA also releases trade data today, which is expected to show the deficit narrowing to -$57.0 bln from -$59.8 bln in December. 12:30 GMT is the key time.
Technically, the USDCAD daily chart has support at 1.3350 (20-day moving average) and 1.3300, with resistance at 1.3425 and the 2019 high at 1.3464. The H4 chart support is at 1.3375 and 1.3330, with resistance at 1.3420 and Monday’s 1.3444. The latest H1 move was a move lower at 11:00, which has reverted as the pair again eyes 1.3400.
Head Market Analyst
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