The USD/CAD failed to stop its previous meeting, losing streak and dropped to 1.3566 level. However, the declines in the currency pair were completely sponsored by the emergence of some U.S. dollar selling bias in the wake of modest risk-on market sentiment backed by the hopes of heavy stimulus from global policymakers. The weaker oil prices triggered by the continuous surge in COVID-19 cases undermined the commodity-linked currency, the loonie also kept a lid on any additional losses in the currency pair. At this particular time, the USD/CAD currency pair is currently trading at 1.3569 and consolidating in the range between 1.3561 – 1.3600.
Despite the heightened concerns of the increasing number of confirmed coronavirus cases across the world, the investors continued cheering the hopes about the coronavirus vaccine, which overshadowed the fears of the virus’s ever-increasing numbers. Moreover, the modest risk-on market sentiment was further bolstered by the fresh COVID-19 stimulus measures from the global policymakers, which are expected to deliver in the week.
However, the traders did not give any major attention to the concerns over the further deterioration in relations between the world’s two largest economies. The U.S. President Donald Trump was considering to impose travel restrictions on all members of the Chinese Communist Party.
At the crude oil front, the WTI crude oil prices remain depressed and flashed mixed signals around 40.25 levels as concerns about the continuous surge in COVID-19 cases could halt fuel demand recovery. However, the crude oil losses, which undermined the commodity-linked currency the loonie, helped limit losses for the pair. The traders will keep their eyes on the USD price dynamics and coronavirus headlines, which could play a key role in influencing the intraday momentum. As well as, the traders will keep their eyes on the news concerning U.S.-China.
The USD/CAD is trading with a selling sentiment at 1.3590 level, testing a support level of 1.3590 level. The recent candle closing is bearish engulfing, which suggests that there are still odds of bearish trend continuation, and if this happens, the pair can drop to 1.3550 level. Below this, the next support level is expected to go after the 1.3490 level. Let’s look for selling trades below 1.3620 level today.
Entry Price – Sell 1.35646
Stop Loss – 1.36046
Take Profit – 1.35246
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
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