USDCAD
The USD/CAD has slumped to fresh weekly lows near 1.2650 after the greenback came under renewed selling pressure in the New York session.
Despite a slight drop in crude oil prices on the WTI benchmark, the US Dollar Index also retreated from intraday highs, after macroeconomic data showed a surge in the initial jobless claims for the week ended January 9.
Also putting pressure on the greenback is the expected rollout of a vastly expanded fiscal stimulus plan by incoming US President Joe Biden, who is expected to provide details in a Friday morning speech.
Furthermore, FOMC Chairman Jerome Powell will provide insight into the Fed’s view of the US economy at a policy outlook online event.
Thursday’s decline lines up the USDCAD to retest recent lows at 1.26478. The 19 February and 16 April lows at 1.25323 await sellers as a potential downside target if the 1.26478 support is taken out by sellers. Below this area, 1.24489 (16 October 2017/12 February 2018 lows) lines up as an additional downside target.
However, if 1.26464 is able to stave off selling pressure on the pair, then a bounce could allow buyers to target 1.26647 initially, followed by 1.27315 and 1.27831 if the buying pressure is maintained. Only a push above 1.29241 gives the USDCAD a fair chance at reversing the strong downtrending price action.
