USDCAD currency pair rose over 1.5% on Tuesday and reached a level not seen since November 2020 as rising recession fears sparked crude sell-off which in turn put pressure on commodity currencies such as Loonie. Investors are concerned that worsening macroeconomic outlook may dent demand for energy commodities, which are vital for the Canadian economy. Additionally, US dollar continues to gather strength with Wall Street indexes facing heavy selling pressure after the long weekend.
USDCAD pair managed to break above the psychological 1.30 level and is testing local resistance at 1.3070 where recent highs are located. If current sentiment prevails, the next target for buyers can be found around 1.3200, which is marked with the upper limit of the 1:1 structure. On the other hand, if global moods improve, another downward wave towards support at 1.2820 may be launched. Source: xStation5
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