“¢ The USD selling remains unabated after weaker UoM consumer sentiment index.
“¢ Bullish crude oil prices continue to underpin Loonie and add to the selling bias.
The USD/CAD pair remained heavily offered through the early North-American session and is currently placed at the lower end of its daily trading range, around the 1.3325-20 region.
The pair stalled this week’s goodish recovery move from sub-1.3300 level, rather met with some aggressive supply on the last trading day of the week and erased all of the previous session’s strong gains to weekly tops.
The US Dollar failed to capitalize on the overnight goodish bounce, supported by robust US economic data and tumbled to its lowest level since March 28, and eventually exerted some fresh downward pressure on the major.
Even a sharp intraday upsurge in the US Treasury bond yields, triggered by a fresh wave of global risk-on trade, did little to impress the USD bulls and ease the prevalent bearish pressure surrounding the major.
The greenback selling remained unabated following the disappointing release of prelim UoM US consumer sentiment index, which fell to 96.9 in April as compared to vs 98 expected and 98.4 recorded in the previous month.
Meanwhile, a goodish pickup in crude oil prices, advancing back above the $64.00/barrel mark, provided an additional boost to the commodity-linked currency – Loonie and further collaborated to the pair’s sharp intraday slide.
It would now be interesting to see if the pair continues to show some resilience at lower levels or finally finds acceptance below the 1.3300 mark to confirm a near-term bearish breakdown.
Technical levels to watch
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