USD/CAD drops to near two-week lows, 1.24 mark back on sight

Haresh Menghani FXStreet

The USD/CAD pair remained under some selling pressure for the third consecutive session and extended its slide farther below the key 1.2500 psychological mark.

The pair extended its post-NFP retracement from one-month tops and has now dropped to near two-week lows, around the 1.2435 region. Persistent US Dollar selling bias, led by Wednesday's perceived dovish FOMC meeting minutes has been one of the key factors dragging the pair lower.

Even a modest pull-back in crude oil prices, which tends to undermine demand for the commodity-linked currency - Loonie, did little to lend any support, with the prevalent weaker sentiment around the greenback acting as an exclusive driver of the pair's slide to its lowest level since Sept. 29.

Today's economic docket features the release of Canadian New Housing Price Index (NHPI), along with PPI figures and weekly jobless claims from the US. Later during the day, Fedspeaks might also influence the USD price dynamics and provide some impetus.

Technical levels to watch

Immediate support is seen near 1.2425 level, below which the pair is likely to accelerate the slide towards the 1.2400 handle before eventually dropping to its next support near mid-1.2300s.

On the upside, 1.2470-75 zone might now cap any immediate recovery attempts, which if cleared might trigger a short-covering rally towards 1.2510-15 intermediate hurdle ahead of 1.2550 area.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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