USD/CAD exhibit a 4-year low as it lies at 1.4393 which is a result of US Dollar’s supremacy. The recent bearish action against the US Dollar has pushed the currency to breach 2016 price zone and may even weaken further to hit around the 2003’s price.
However, the major question is:
Looking into the information amidst the global crisis that the whole world is a part of, the United States and Canada agreed to close the border in order to curb the non-essential travel. Alongside, oil is Canada’s one of the major exports that have experienced an extended price fall in this duration and has also recorded 30-year bottom. Moreover, Canadian Dollar has been facing heavy selling pressure as it recorded a bearish crossover at 1.478 against the US Dollar. There have been major changes in USD/CAD dynamics due to the reduction in the oil price.
The upside in the USD/CAD was witnessed until 1.478 just yesterday, while, currently lies at 1.43934 with resistance at 1.480 and 1.485. Currently, the spread of COVID’19 is acting as a strong catalyst for the CAD to weaken against the USD. The world markets are under the radar of the global breakdown and a further bearish move of the pair can lead to barring the liquidity flow.
