USD/CAD falls to over 1-week lows amid broad-based USD weakness

USD/CAD failed to capitalize on its early uptick and met with some fresh supply near 1.4275 region.
The prevailing bearish sentiment surrounding the USD was seen as a key factor weighing on the pair.
The already weaker greenback was further weighed down by the Fed Chair Powell’s latest comments.

Haresh Menghani FXStreet

The USD/CAD pair dropped to 1-1/2 week lows in the last hour, albeit managed to find some support just ahead of the 1.4100 round-figure mark.

The pair failed to capitalize on its early attempted recovery move to the 1.4275 region, rather met with some fresh supply and has retreated over 150 pips from daily tops, all against the backdrop of persistent selling bias surrounding the US dollar.

The already weaker sentiment surrounding the greenback deteriorated further after the Fed Chair Jerome Powell, in an interview on NBC Today, said that the US central bank still has room for more action to combat coronavirus crisis.

Against the backdrop of the Fed's unlimited quantitative easing program earlier this week, Powell's comments exerted some additional pressure on the USD and aggravated the bearish pressure/contributed to the ongoing slide.

With the USD price dynamics turning out to be an exclusive driver of the pair's momentum, the downfall seemed rather unaffected by some renewed weakness in crude oil prices, which tend to undermine demand for the commodity-linked currency – the loonie.

Moving ahead, market participants now look forward to the US economic docket, featuring the release of the highly anticipated initial weekly jobless claims and the final Q4 GDP growth figures, for some short-term trading opportunities.

Technical levels to watch

USD/CAD

Overview
Today last price	1.413
Today Daily Change	-0.0062
Today Daily Change %	-0.44
Today daily open	1.4192

Trends
Daily SMA20	1.3871
Daily SMA50	1.348
Daily SMA100	1.3323
Daily SMA200	1.3259

Levels
Previous Daily High	1.4484
Previous Daily Low	1.4178
Previous Weekly High	1.4668
Previous Weekly Low	1.3788
Previous Monthly High	1.3465
Previous Monthly Low	1.3202
Daily Fibonacci 38.2%	1.4295
Daily Fibonacci 61.8%	1.4367
Daily Pivot Point S1	1.4086
Daily Pivot Point S2	1.398
Daily Pivot Point S3	1.3781
Daily Pivot Point R1	1.4391
Daily Pivot Point R2	1.459
Daily Pivot Point R3	1.4696

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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