USDCAD: Loonie Posts 17-day High Against the Greenback as Hurricane Delta Strengthens

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Written By: Eno Eteng (MSTA)

Oct 08, 2020, 18:46 BST 18:46

USDCAD

Summary:

The USDCAD is at 17-day lows as Hurricane Delta forces closure of oil production in the US Gulf Coast, leading to a rise in crude oil prices.

The USDCAD resumed the downward move today, hitting the lowest level since September 21 after oil prices rose on the WTI and the Brent benchmarks on Thursday. Also, BoC Governor Tiff Macklem declared that the bank would not deploy negative interest rates even if the coronavirus situation were to worsen.

Crude oil prices rose for the 3rd straight day as Hurricane Delta continued to barrel through the Gulf Coast on Thursday. It is expected to make landfall in Cancun Mexico, before setting its sights to the US southern state of Louisiana on the Gulf Coast. Oil production was shut down in the area earlier in the week, prompting supply concerns and a consequent rise in the crude oil benchmarks. As a result, the oil-linked Loonie posted a 0.17% gain on the greenback.

Technical Outlook for USDCAD

Today’s bearish move is now challenging the support at 1.32044. A breakdown of this area opens the door towards 1.31501, with 1.30385 and 1.29953 all remaining viable targets to the south.

Conversely, a bounce on the present support level could allow for price to attain the 1.33487 level, with 1.34656 and 1.35499 also in view.

USDCAD Daily Chart

Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.