The Canadian dollar and oil prices continued losing ground amid growing concerns over the global outbreak of the deadly coronavirus and its impact on the world economy, which might eventually lead to lower demand.

 

The dollar extended losses on Thursday, falling to two-week lows against a basket of currencies except against the Loonie despite global spread of the coronavirus fired up expectations for a U.S. rate.

 

From an Elliot wave perspective, the currency pair appears to be in a wave C of an upward zigzag corrective pattern from a bearish leading diagonal which has been forming since 28th of January 2019.

 

Short term target for the corrective pattern at 100% is at $1.3580 which is also meets 88.6% Fibonacci retracement of the diagonal.

 

 

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