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).
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