Retreating US bond yields weighed on the USD and prompted some selling around USD/CAD. An intraday pullback in crude oil prices undermined the loonie and helped limit the downside. Neutral technical indicators warrant caution before placing any aggressive directional bets. The USD/CAD pair witnessed some fresh selling on Tuesday and dropped to three-day lows, albeit showed some resilience below the 1.2600 mark. The pair managed to recover around 25-30 pips from daily lows and was last seen trading around the 1.2620 region, down around 0.35% for the day. A sharp pullback in the US Treasury bond yields prompted traders to lighten their US dollar bullish positions and exerted some pressure on the USD/CAD pair. However, intraday slide in crude oil prices undermined the commodity-linked loonie and helped limit any further losses for the major. From a technical perspective, a break below 200-hour SMA was seen as a key trigger for bearish traders and dragged the USD/CAD pair to the lower end of a two-week-old trading range. That said, the emergence of some dip-buying warrants some caution before positioning for any further decline. Meanwhile, neutral technical indicators on hourly/daily charts – though have been recovering from the negative territory – haven’t been supportive of any firm direction. This makes it prudent to wait for a convincing break through the mentioned range to confirm the near-term trajectory. In the meantime, the 1.2600-1.2590 region might continue to protect the immediate downside and is closely followed by support near the 1.2575 region. Sustained weakness below might now turn the USD/CAD pair vulnerable to accelerate the slide towards the key 1.2500 psychological mark. On the flip side, any meaningful recovery is likely to confront resistance near mid-1.2600s. Some follow-through buying might assist bulls to make a fresh attempt to reclaim the 1.2700 mark. Above the mentioned barriers, the USD/CAD pair could aim back to challenge the 1.2740-50 supply zone. USD/CAD 1-hourly chart Technical levels to watch FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US Dollar Index Price Analysis: Decent support emerged around 92.00 FX Street 1 year Retreating US bond yields weighed on the USD and prompted some selling around USD/CAD. An intraday pullback in crude oil prices undermined the loonie and helped limit the downside. Neutral technical indicators warrant caution before placing any aggressive directional bets. The USD/CAD pair witnessed some fresh selling on Tuesday and dropped to three-day lows, albeit showed some resilience below the 1.2600 mark. The pair managed to recover around 25-30 pips from daily lows and was last seen trading around the 1.2620 region, down around 0.35% for the day. A sharp pullback in the US Treasury bond yields prompted traders to… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
