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  • USD/CAD remained under bearish pressure on Thursday amid sustained USD selling.
  • The set-up favours bearish traders and supports prospects for additional weakness.

The USD/CAD pair continued losing ground through the early North American session and dropped to fresh three-week lows, around the 1.2660 region post-US jobless claims.

The downfall was exclusively sponsored by the prevalent US dollar selling bias. A softer tone surrounding crude oil prices, which tend to undermine demand for the commodity-linked loonie, did little to lend any support to the USD/CAD pair or stall the intraday slide.

From a technical perspective, the pair’s inability to find acceptance above the 1.2700 mark supports prospects for further weakness. The bearish outlook is reinforced by the fact that oscillators on the daily chart have again started drifting into the negative territory.

Hence, a subsequent fall towards the 1.2630 intermediate horizontal support, en-route sub-1.2600 level, or YTD lows, now looks a distinct possibility.

On the flip side, the 1.2700-1.2710 region now seems to have emerged as immediate strong resistance. A sustained move beyond might trigger a short-covering move and push the USD/CAD pair to the next relevant resistance near the 1.2780 heavy supply zone.

USD/CAD 4-hourly chart

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Technical levels to watch