USD/CAD flirting with daily lows, bears await a sustained breakthrough 1.3200 mark

Haresh Menghani FXStreet

• The USD continues to be weighed down by dovish Fed expectations.
• Subdued oil price dynamics do little to influence the intraday slide.
• Traders now eye today’s release of the US consumer inflation figures.

The USD/CAD pair came under some renewed selling pressure on Friday and has now moved on the brink of sliding back below the 1.3200 handle.

The pair struggled to build on the overnight attempted rebound from one-month lows and traded with a bearish bias on the last trading day of the week, marking the seventh session of decline in the previous eight amid the prevailing bearish sentiment surrounding the US Dollar.

A slew of Fed speakers on Thursday, including Chairman Jerome Powell, reiterated the idea of being patient on the next rate hike move and kept the USD bulls on the defensive, which was eventually seen exerting some fresh downward pressure on the major.

Meanwhile, a subdued action around oil market, with WTI crude oil holding steady above mid-$52.00, did little to influence the commodity-linked Loonie, with the USD price dynamics turning out to be an exclusive driver of the pair's momentum on the last trading day of the week.

Moving ahead, today's US economic docket, highlighting the release of the latest US consumer inflation figures, due for release later during the early North-American session, will be looked upon for some immediate respite for the greenback and some meaningful trading opportunities.

Technical levels to watch

On a sustained weakness below the 1.3200 mark, the pair is likely to aim towards challenging 100-day SMA support, currently near the 1.3170 region. On the flip side, the 1.3235-40 area now seems to act as an immediate resistance, above which a bout of short-covering might lift the pair further towards reclaiming the 1.3300 handle en-route 50-day SMA, around the 1.3320-25 region.

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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