“¢ The prevalent USD weakness prompts some fresh selling at higher levels.
“¢ A modest pull-back in oil prices fails to lend any support/ease bearish pressure.
The USD/CAD pair came under some renewed selling pressure on Monday, with bears now eyeing a sustained break below the 1.3300 handle.
The pair failed to capitalize on the early Asian uptick to an intraday high level of 1.3347 and has now dropped back closer to two-week lows amid some renewed US Dollar selling bias, despite a modest uptick in the US Treasury bond yields.
Meanwhile, a mildly negative tone surrounding crude oil prices, which tend to undermine demand for the commodity-linked currency – Loonie, also did little to lend any support or stall the ongoing slide back closer to last week’s lows.
It would now be interesting to see if the pair continues showing some resilience below the 1.3300 handle, or the current leg of a slide marks the resumption of the recent bearish trajectory amid absent relevant market moving economic releases.
However, this week’s key event risk – the latest FOMC monetary policy update on Wednesday, might hold traders from placing aggressive bets and might turn out to be the only factor helping limit deeper losses, at least for the time being.
Technical levels to watch
The 1.3290 region might continue to protect the immediate downside, which if broken might accelerate the slide towards 50-day SMA, around the 1.3265 region, en-route 1.3335-30 horizontal support. On the flip side, the 1.3330-35 region now seems to act as an immediate resistance and is followed by resistance near the 1.3370 area, above which the pair seems all set to reclaim the 1.3400 handle.
Share
