USD/CAD Stays Subdued
Ming Lam May 11, 2020 5:12 AM
The rush to obtain U.S. dollar funding during the max of market distress (as seen in March and early April) has largely faded...
Last Friday, the April U.S. jobs report came out not as ugly as expected (a reduction of 20.500 million Nonfarm Payrolls vs. -22.000 million expected, jobless rate soaring to 14.7% vs. 16.0% expected), the Canadian economy shed 1.99 million jobs (vs. -4.00 million expected) with a jobless rate of 13.0% (vs. 18.1% expected) --.also not as grim as expected.
As virus-hit countries and U.S. states gradually relax coronavirus-induced restrictions and reopen their economies, market sentiment has been boosted.
And the rush to obtain U.S. dollar funding during the max of market distress (as seen in March and early April) has largely faded.
On an Intraday 30-minute Chart, USD/CAD remains on the downside after retreating from a high of 1.4173 seen on May 7.
Source: GAIN Capital, TradingView
In fact, USD/CAD is trading within a Bearish Channel having confirmed a Bearish Pattern of Lower Highs.
Currently it has swung to the Lower Bollinger Band keeping the intraday outlook as bearish.
A Key Resistance is located at 1.3945 (around the Upper Bollinger Band).
Trading below this key Resistance, USD/CAD is expected to Seek Support at 1.3880 and 1.3845 on the downside (both levels last seen at end-April).