USD/CAD back in the red near 1.2580, Canadian data in focus

Dhwani Mehta FXStreet

Broad based US dollar recovery lost legs in early Europe, now pushing USD/CAD to hit fresh daily lows near 1.2580 region.

USD/CAD eyes on Canadian CPI, retail sales

The major stalled its recovery from fourteen-month lows of 1.2543, as the USD bears regained control, knocking-off the USD index back below 94 handle in a bid to test multi-month lows of 93.89 levels.

The US political drama surrounding Trump’s election campaign continues to weigh heavily on the US dollar, while the resource-linked Loonie also benefits from the recent strength seen in oil prices, after the black gold clinched fresh six-week highs a day before.

Looking ahead, it’s a big day today for the Canadian dollar, with the risk events due on the cards from the Canadian docket, including the CPI and retail sales data.

USD/CAD Technical levels

The next resistance can be seen at 1.2605 (daily top), 1.2640/54 (Jul 20 & 19 high) and 1.2679 (10-DMA). Next support to the downside can be found at 1.2543 (multi-month lows), 1.2496 (classic S2/ Fib R1) and 1.2450 (psychological levels).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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