USD/CAD: Bears attack 1.2100 threshold to refresh multi-month low

USD/CAD drops to the fresh four-year low while taking offers to 1.2110 amid Monday’s Asian session. The Loonie pair buyers cheered broad US dollar weakness on Friday while the latest gains of WTI, Canada’s main export item, as well as mild risk-on mood, seem to help the bulls afterward.

WTI picks up bids amid mixed catalysts as Iran teases nuclear deal and Iraq put out fire at a second oil well in a north oil field. It’s worth mentioning that the US dollar weakness and hopes of further easy money from the Fed, not to forget the vaccine-led recovery in the West from the coronavirus (COVID-19), seem to provide additional strength to the oil buyers.

Read: WTI bulls keep in charge in the open among bullish market structure

Also positive for the market sentiment could be the European Union’s (EU) vaccine deal with Pfizer-BioNTech that will help the bloc to match the global leaders, as far as the pace of jabbing is concerned.

Amid these plays, S&P 500 Futures print 0.11% intraday gains while the US dollar index (DXY) stays sluggish around late February lows.

It’s worth mentioning that the Canadian jobs report for April also lagged behind the market consensus but the US Nonfarm Payrolls (NFP) triggered heavy disappointment among the greenback buyers via propelling the need for further easy money policies by the Fed.

Looking forward, a lack of major data/events can help the USD/CAD to extend the latest bearish trend, though with a lesser pace. However, any surprises won’t be taken lightly and hence the pair sellers should be cautious near the multi-month low.

Technical analysis

The year 2017 low near 1.2060 is on the USD/CAD seller’s radar but the 1.2100 round-figure can offer an intermediate halt during the fall. Meanwhile, early 2018 low near 1.2250 guards recovery moves.