USD/CAD holds weaker below 1.30 handle

Haresh Menghani FXStreet

• USD fails to gain any traction and keeps exerting downward pressure.
• Subdued action around oil markets does little to influence the pair.
• Traders now eye US monthly retail sales data for some fresh impetus.

The post-FOMC USD weakness remains unabated, with the USD/CAD pair holding weaker below the key 1.3000 psychological mark on Thursday.

The US Dollar quickly faded hawkish Fed rate hike-led upsurge and prompted some aggressive selling around the major during the New-York trading session on Wednesday.

The pair extended overnight sharp retracement from an intraday high level of 1.3052, or over one-week high, and continues to be weighed down by a softer tone surrounding the greenback.

Currently trading around the 1.2975 region, within striking distance of weekly lows, a subdued action around crude oil prices did little to influence demand for the commodity-linked currency - Loonie, with the USD price dynamics acting as an exclusive driver of the pair's momentum through the early European session.

Moving ahead, focus now shifts to the US economic docket, highlighting the release of monthly retail sales data, which might help traders to grab some short-term opportunities.

Technical levels to watch

Weakness below the 1.2955 level (weekly lows) is likely to accelerate the fall further towards 1.2920-15 intermediate zone en-route the 1.2900 handle and 1.2875-70 support area.

On the upside, any up-move might now confront resistance near the 1.30 handle, above which the pair could make a fresh attempt towards retesting June monthly highs resistance near the 1.3065 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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