USD/CAD (current price: 1.3132)
The Canadian Dollar lost ground on its U.S. counterpart on Tuesday as negative economic data weighed on the currency. That, coupled with the unfavorable technical situation, points to further downside for the Loonie. The correction may be even deeper should oil resume its decline in the coming days. The pair is less than 2% the long-term moving average at 1.33, which might be the next target for traders in the coming sessions.
Our assessment: USD/CAD might be headed to the 200-day moving average following the sharp decline between the end of January and March.
