The USDCAD has moved down to test its 200 hour moving average 1.2843. The price low reached 1.2836 which was also near a high swing area between 1.2828 and 1.2836. The 38.2% retracement of the move up from the December low for the December high comes in at 1.28231. That level is also in play and a key target to get to and through if the sellers are to take more control. So far the support buyers are holding the cluster of targets. Risk can be defined and risk can be limited.
Fundamentally, Canada’s PM Trudeau has announced new support measures to help the offset the damage done by the omicron. Those measures will be in effect until February 12, 2022 and will cost about C$4 billion. The finance minister says that the cost will be covered by contingency already set aside in fiscal update.
Canada has now seen a total of 2360 cases of omicron, the daily case count for Covid 19 jumped to 11,300 on Tuesday.
The top medical health officer saying that the very spreads extremely quickly and the situation could rapidly get out of hand anywhere in Canada. Within Trudeau’s government three members of his personal staff and three members of his security detail have tested positive. That puts into question the Prime Minister’s exposure.
The White House reported earlier that Pres. Biden tested negative on Wednesday for the Covid virus.