The USDCAD pair dropped on Wednesday as well, brought down by the dovish Powell and weakening greenback, but the decline was not as steep as elsewhere. On Thursday, the pair was actually a bit higher during the London session, changing hands at 1.3290.

The important upward trend line stands at 1.3250 and while above, the outlook seems bullish. This is the major support and if not held, further decline toward 1.3160 or 1.3120 might occur. Dropping below these two zones could change the outlook to bearish, with the target at 100-day average near 1.3065.

On the upside, the resistance could be at 1.3315 and then at Wednesday’s highs near 1.3360.

Oil continues to plunge and is now seen at fresh cycle lows below the 50 USD level, which is negative for the Canadian Dollar and therefore the upside potential for the Loonie seems capped.

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On the New York Mercantile Exchange, West Texas Intermediate futures were down 1.1% at $49.75 a barrel, falling below $50 a barrel for the first time in almost 14 months.

Oil prices were hit by another wave of heavy selling Thursday, with fears of climbing production dragging the two most popular benchmarks to lows not seen in more than a year.