“¢ Persistent USD selling bias exerts downward pressure for the second straight session.
“¢ A goodish recovery in oil prices underpin Loonie and add to the ongoing corrective slide.
The USD/CAD pair held on to its weaker tone through the early North-American session and refreshed session low, around the 1.3215 region in the last hour.
After an initial uptick to an intraday high level of 1.3245, the pair met with some fresh supply and drifted into negative territory for the second consecutive session on Thursday amid the prevalent US Dollar selling bias.
Speculations that the Fed might pause the rate hike cycle in 2019, especially after the Fed Vice Chair Richard Clarida’s dovish comments last Friday, continued encouraging investors to sell the buck after the recent rally.
The already fragile greenback weakened further in wake of a sudden upsurge in the British Pound and was seen as one of the key factors exerting some fresh downward pressure on the major.
Adding to this, a goodish recovery in crude oil prices underpinned the commodity-linked currency – Loonie and further collaborated to the pair’s ongoing retracement slide from over 4-1/2 month tops set earlier this week.
The downside, however, remained cushioned amid a quiet trading session and relatively thin liquidity conditions on the back of the Thanksgiving holiday in the US. Hence, it would be prudent to wait for a strong follow-through selling before confirming that the pair might have actually topped out in the near-term.
Technical levels to watch
Immediate support is pegged near the 1.3200 handle, below which the pair is likely to accelerate the slide further towards the 1.3150-40 region. On the flip side, the 1.3240-45 zone now seems to have emerged as an immediate hurdle, which if cleared could assist the pair to make a fresh attempt towards reclaiming the 1.3300 round figure mark.
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