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

USD/CAD stays offered near the lowest since September 2017.
Risk-on mood, WTI strength helps the sellers to extend Friday’s south-run.
Light calendar keeps risk sentiment-related headlines in the driver’s seat.

Anil Panchal FXStreet

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.

Additional important levels

Overview
Today last price	1.2117
Today Daily Change	-10 pips
Today Daily Change %	-0.08%
Today daily open	1.2127

Trends
Daily SMA20	1.2406
Daily SMA50	1.2504
Daily SMA100	1.2617
Daily SMA200	1.2874

Levels
Previous Daily High	1.2194
Previous Daily Low	1.2122
Previous Weekly High	1.2352
Previous Weekly Low	1.2122
Previous Monthly High	1.2654
Previous Monthly Low	1.2266
Daily Fibonacci 38.2%	1.215
Daily Fibonacci 61.8%	1.2167
Daily Pivot Point S1	1.2102
Daily Pivot Point S2	1.2076
Daily Pivot Point S3	1.203
Daily Pivot Point R1	1.2173
Daily Pivot Point R2	1.2219
Daily Pivot Point R3	1.2245

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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