USD/CAD bounces off 14-month lows, retakes 1.25 handle
|The greenback selling pressure remains unabated, with the USD/CAD pair struggling near 14-month lows around the key 1.25 psychological mark.
The pair extended its recent bearish trajectory and tumbled to its lowest level since May 2016 amid broad based US Dollar selling bias. Rising uncertainty over the US political scenario continues to dent sentiment around the already weaker greenback, led by fading expectations of any additional Fed rate hike action in 2017.
This coupled with the ongoing up-move in crude oil prices extended additional support to the commodity-linked currency - Loonie and further collaborated towards keeping a lid on any meaningful recovery for the major.
The downfall, however, seems to have stalled, at least for the time being, with the pair bouncing off few pips from lower levels to currently trade around 1.2510-15 region.
Traders now look forward to today’s release of Conference Board’s Consumer Confidence Index, due for release later during the NA session, for some fresh impetus.
Technical levels to watch
Bears would be eyeing for a sustained break through the 1.2500 handle, below which the pair is likely to extend the downfall towards May 2015 lows support near the 1.2460 region. On the upside, any recovery move now seems to confront fresh supply near mid-1.2500s, above which the up-move could get extended towards 1.2590 horizontal resistance ahead of the 1.2620-25 hurdle.
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