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  • The USD/CAD pair met with some fresh supply on the first day of a new trading week and has now moved well within the striking distance of over eight-month lows,  set last week.
  • The pair’s inability to capitalize on Friday’s goodish intraday bounce to levels beyond the 1.3100 handle clearly suggests that the near-term bearish pressure might still be far from over.

Currently hovering around 38.2% Fibo. level of the Dec. 2017-Jan. 2019 bullish move, a follow-through weakness below the recent swing low – around the 1.3040-35 region, will reinforce the negative outlook and open the room for a further near-term depreciating move.

Below the mentioned support, the pair is likely to turn vulnerable and accelerate the slide towards challenging the key 1.30 psychological mark before the bearish momentum gets extended further towards the next major support near the 1.2970-65 region.

On the flip side, immediate resistance is now pegged near the 1.3100 handle and any subsequent recovery is more likely to remain capped near the 1.3135-45 supply zone, which if cleared might negate the negative outlook and prompt some short-covering move.

USD/CAD daily chart