USDCAD continues to trade higher for 4th consecutive weeks and jumped more than 200 pips. The jump was mainly due to weak crude oil prices and dovish BOC. The spread of the virus might affect global economic growth. Canada is one of the major oil producers and the outbreak of coronavirus will decline the demand for oil. The pair hits an intraday high of 1.31909 and is currently trading around 1.31845.
WTI crude oil plunged sharply and hits 3-month low as to increase death toll to 80, the number of infected people jumped from 18 to 2800. It hits an intraday low of $52.18 and is currently trading around $52.84.
USDCAD is facing strong resistance around 1.31950, any further bullish continuation only beyond that level. Any break up targets 1.31800/1.3238.
On the flip side, near-term support is around 1.3130 and any indicative break under will drag the pair till 1.3070/1.3020/ 1.3000/1.29500.
It is good to buy on dips around 1.3158-60 with SL around 1.3100 for the TP of 1.3300.
