The price of the USDCAD is holding above its 200 weekly moving averages and the trendline drawn from 03/09/2017 connected to the swing low made on 29/121/2019 at 1.29514 and projected forward intersects in the region of the weekly 200 moving averages adding additional confluence. The swing low made on 21/02/2020 at 1.32018 appears to provide strong support as we have seen price rally significantly from this level and in yesterday’s trading, price retested this level and close above it suggesting buyer interest rests around 1.3200. Therefore, I anticipate in the short term some bullish activity on the USDCAD, where there is likelihood of moving towards 1.3316. However, along the way, particularly in the shorter time frame we have overhead resistance arising from the 9, 20, 50 and 200 moving averages.
EUR/USD
The ECB said on Thursday it was increasing the overall size of its Pandemic Emergency Purchase Programme (PEPP) by 500 billion euros to 1.85 trillion euros. It extended the scheme by nine months to March 2022. Whilst on Friday, ECB policymaker Francois Villeroy de...