“¢ Stalls overnight retracement slide and finds some support at lower levels.
“¢ Renewed weakness in oil prices undermine Loonie and extend some support.
“¢ The prevalent USD selling bias does little to provide any meaningful impetus.
The USD/CAD pair caught some minor bids on Thursday and traded with a mild positive bias through the early European trading session.
The pair stalled overnight sharp retracement from 4-1/2 month tops and found some buying interest at lower levels. Renewed weakness in crude oil prices weighed on the commodity-linked currency – Loonie and eventually extended some support to the major.
After yesterday’s modest rebound from oversold territory, WTI crude oil resumed with its bearish trend on and turned out to be the only factors behind the pair’s modest uptick through the early European session on Thursday.
The uptick, however, seemed lacking any strong conviction/follow-through and remained capped amid the prevalent selling bias surrounding the US Dollar, which remained on the defensive in wake of Fed rate hike uncertainty beyond 2018.
With the US markets closed in observance of Thanksgiving Day, the pair remains at the mercy of oil price dynamics and the broader market risk sentiment, which tends to influence the greenback’s safe-haven demand.
Technical levels to watch
Bulls might be eyeing for a sustained move back above the 1.3250-60 region, above which the pair is likely to aim back towards the 1.3300 round figure mark. On the flip side, the 1.3210-1.3200 reigon seems to protect the immediate downside, which if broken might turn the pair vulnerable to slide back towards testing the 1.3155-50 support area.
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