USD/CAD slides to over 1-month lows, below mid-1.3100s
|- The USD selling remains unabated despite an uptick in the US bond yields.
- Bullish oil prices underpinned the loonie and added to the bearish pressure.
The bearish pressure surrounding the greenback remained unabated on the first day of a new trading week and dragged the USD/CAD pair to fresh multi-week lows, below mid-1.3100s in the last hour.
The pair extended its recent pullback from a six-month-old descending trend-line resistance – levels beyond the 1.3300 handle – and witnessed some follow-through selling on Monday, marking its fifth day of a negative move in the previous six.
Weighed down by weaker USD, bullish oil
Despite a modest pickup in the US Treasury bond yields, supported by the prevalent risk-on mood triggered by the latest trade optimism, the US dollar struggled to attract any buying interest and was seen as one of the key factors exerting some pressure on the major.
This coupled with an intraday bounce in crude oil prices – now back near the $60.00/barrel –provided an additional boost to the commodity-linked currency – loonie and further collaborated to the pair’s downfall to the lowest level since November 6.
It will now be interesting to see if the pair is able to find any support at lower levels or the ongoing slide marks a fresh bearish breakdown amid absent relevant market-moving economic releases, either from the US or Canada.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.