“¢ A subdued USD price action fails to assist build on last week’s goodish up-move.
“¢ A modest pull-back in oil prices undermines Loonie and helped limit the downtick.
The USD/CAD pair struggled to capitalize on the early uptick to fresh two-week tops and dropped to session low in the last hour, albeit managed to hold its neck above 1.3400 handle.
A subdued US Dollar price action failed to assist the pair to build on last week’s goodish up-move of around 180-pips from the very important 200-day SMA, which got an additional boost from Friday’s disappointing Canadian monthly retail sales data.
However, a modest uptick in the US Treasury bond yields extended some support to the USD, which coupled with a pull-back in crude oil prices further undermined demand for the commodity-linked currency – Loonie and helped limit any meaningful corrective slide.
It would now be interesting to see if the pair is able to attract any buying interest at lower levels and retain its near-term bullish bias or witness some additional long-unwinding/profit-taking move amid absent relevant market moving economic releases on Monday.
Technical levels to watch
Weakness below the 1.3400 mark could get extended towards the 1.3370-65 intermediate support en-route the 1.3335-30 region. On the flip side, momentum beyond the 1.3440 area has the potential to lift the pair towards multi-month tops, around the 1.3465-70 region, ahead of the key 1.3500 psychological mark.
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