“¢ Mid-European session recovery attempt gets sold into near 1.2780 level.
“¢ Subdued USD demand/US bond yields keep exerting downward pressure.
“¢ Bullish oil prices further underpin Loonie and add to the selling bias.
The USD/CAD pair’s mid-European session recovery attempt fizzled near the 1.2780 level, with bears now trying to push it through mid-1.2700s support area.
Against the backdrop of a follow-through US Dollar retracement slide, the ongoing bullish run in crude oil prices underpinned the commodity-linked currency – Loonie and kept exerting downward pressure on the major for the second consecutive session.
Meanwhile, a subdued action around the US Treasury bond yields did little to revive the USD demand and stall the pair’s downfall back closer to an immediate strong support near the 1.2750 region.
It, however, remains to be seen if the pair continues finding some buying interest near the mentioned support or extends its bearish slide through the NY trading session amid absent market moving economic releases from the US and Canada.
Technical levels to watch
A follow-through selling pressure, leading to a subsequent break below 1.2730 level now seems to accelerate the fall and drag the pair further towards testing 100-day SMA support near the 1.2700 region.
On the flip side, any recovery attempts beyond 1.2775-80 immediate hurdle is likely to confront resistance near the 1.2800 handle and is followed by 50-day SMA barrier near the 1.2825 region.
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