- The prevalent USD selling bias kept exerting downward pressure on Monday.
- Bearish traders seemed rather unaffected by a sudden drop in Crude Oil prices.
The USD/CAD pair dropped to 2-1/2 month lows in the last hour, with bears now eyeing some follow-through weakness below the 1.3100 round-figure mark.
Following a brief consolidation during the Asian session, the pair turned lower for the third consecutive session on Monday and was seen extending its recent sharp pullback from the 1.3345-50 supply zone.
Weaker USD offsets sliding Oil prices
The prevalent US Dollar selling bias, despite a goodish intraday pickup in the US Treasury bond yields, was seen as one of the key factors exerting some fresh downward pressure on the first day of a new trading week.
Meanwhile, the intraday downtick seemed rather unaffected by a sharp fall in Crude Oil prices, which tend to undermine demand for the commodity-linked currency – Loonie, albeit might help limit deeper losses.
Signs of ample global oil supply along with growing concerns about economic growth in China, the world’s largest oil importer, dragged Crude Oil prices lower for a second straight session on Monday.
It will now be interesting to see if the pair is able to find any support at lower levels or continues with its bearish trajectory amid absent relevant market-moving economic releases – either from the US or Canada.
Technical levels to watch
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