Chart of the Day USDCAD

<h2><span>Chart of the Day USDCAD</span></h2>
<p><strong>USDCAD – Probable Price Path</strong></p>
<p><span>US equity markets were little changed (S&amp;P500 -0.1%) overnight amid disappointing hints about Gilead’s Remdesivir drug performance in Covid-19 trials. The UST bond yield curve flattened as longer dates bonds were stayed bid with the 10-year at 0.60%. Elsewhere, the EU agreed on a new deal for a EUR540b short term rebuilding plan but remain divided on a longer term plan. ECB chief Lagarde warned of too little action and the risk of a -15% recession. Meanwhile, BOJ is said to be considering lifting the annual bond purchase cap to unlimited and double targets for CP and corporate bonds at next Monday’s meeting. </span></p>
<p><span>US Initial jobless claims eased to 4.43m but brought the total to 26.5m, while new home sales slumped 15.4% in March in its biggest decline since 2013. The April PMI also crashed from 40.9 to 27.4 (lowest since at least 2009). The House passes $484b in additional aid for small businesses and hospitals, and now awaits President Trump’s signing.</span></p>
<p><span>Oil Prices continue to stage a recovery post-Tuesday, when front-month WTI futures recorded negative prices. Brent closed 4.7% higher to $21.33/bbl while WTI rose 19.7% to $16.50/bbl. The Brent-WTI spread of $4.83/bbl is now the lowest in three weeks. The CAD is showing modest gains, lifted by a 13.5% gain in crude prices. <a href="https://www.youtube.com/watch?v=xQm3Q8PdEb4&amp;list=PLqiTLOLxFlEwZypsR6uwleWgmbDQSueRz&amp;index=1">As highlighted in yesterdays live analysis session</a>, from a seasonality perspective the CAD has witnessed gains in Q2 13 times out of the last 20years</span></p>
<p><img class="aligncenter size-full wp-image-42359" src="http://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-24-10.16.48.png" alt="" width="1534" height="965" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-24-10.16.48.png 1534w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-24-10.16.48-300×189.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-24-10.16.48-1024×644.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-24-10.16.48-768×483.png 768w" sizes="(max-width: 1534px) 100vw, 1534px" /></p>
<p><span>From a technical and trading perspective, in line with the view that 12.50 would set a base in Crude Oil we now look for the USDCAD to turn lower yesterday’s close flipped the daily chart bearish as yesterday’s highs contina upside attempts today bearish exposure should be rewarded as we trade below yesterday’s closing level the initial downside objective will be the prior cycle lows at 1.39 through here and bears will look for tests of two equality objectives firstly at 1.3784 through here opens the primary equality objective measured from the late Marcg cycle high at 1.3610</span></p>
<p><img class="aligncenter size-full wp-image-42360" src="http://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-24-10.15.45.png" alt="" width="2127" height="1208" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-24-10.15.45.png 2127w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-24-10.15.45-300×170.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-24-10.15.45-1024×582.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-24-10.15.45-768×436.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-24-10.15.45-1536×872.png 1536w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-24-10.15.45-2048×1163.png 2048w" sizes="(max-width: 2127px) 100vw, 2127px" /></p>
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<p>The post <a rel="nofollow" href="https://blog.tickmill.com/trading-strategies/chart-day-usdcad-3/">Chart of the Day USDCAD</a> appeared first on <a rel="nofollow" href="https://blog.tickmill.com">Tickmill</a>.</p>