USD/CAD extends slide toward 1.3350 on US dollar weakness

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  • USD/CAD head for the lowest close since March 6, hits lowest since coronavirus crisis.
  • US dollar tumbles across the board, DXY drops 0.55%.

The USD/CAD lost more than two hundred pips on Monday, and it was about to post the lowest close in almost three months. The pair continued to slide during the American session. As of writing, it was trading at fresh lows at 1.3558.

A weaker US dollar across the board pushed USD/CAD sharply lower. The greenback also lost ground versus other commodity currencies. Equity prices in Wall Street were modestly higher, and crude oil prices were testing multi-month highs.

The DXY lost 0.55% falling under 98.00. It was falling for the fourth time out of the last five trading days, about to post the lowest close since March 13.

Resuming slide after pullback

From a technical perspective, intraday indicators show oversold readings but no signs of a correction. In the daily chart, is seen how the price broke the 4-day trading range and below the 100-day simple moving average. USD/CAD pulled back to levels near 1.3850 (April & mid-May lows) before resuming the downside.

Now the 1.3720/30 is a resistance area in USD/CAD. On the flip side, the next critical support stands at 1.3500.

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