29.04 - USD/CAD remains under pressure
- by George Solotarov
USD/CAD drops further below 1.4000, currently near 1.3950, down 0.33% on a day, during the early Wednesday’s trading. The pair nears the two-week low flashed the previous day amid broad US dollar weakness and recovery moves of the oil prices. The greenback declines could be attributed to the downbeat US data as well as uncertainty surrounding when the US economy will re-open after the coronavirus (COVID-19) crisis. However, US President Donald Trump keeps pushing for the early restart while rejuvenating the US-China tussle by alleging the dragon nation for the spread of the deadly virus.
Considering the pair’s sustained break of the seven-week-old rising trend line, at 1.4005 now, bears are likely aiming for a 50-day SMA level near 1.3900. Meanwhile, an upside clearance above 1.4005 will have 21-day SMA, close to 1.4060, as additional resistance to watch