USD/CAD loses traction, drops toward 1.2270 as USD struggles to find demand


  • USD/CAD pair came under modest bearish pressure during American session.
  • US Dollar Index fell below 91.00 with US T-bond yields pushing lower.
  • WTI rises above $64 after staying quiet earlier in the day.

After trading around 1.2300, the USD/CAD pair came under modest selling pressure in the early trading hours of the American session and dropped to 1.2270 area. As of writing, the pair was posting small daily losses at 1.2283.

USD selloff intensifies 

The broad-based selling pressure surrounding the greenback seems to be forcing USD/CAD to edge lower. Following Friday's impressive upsurge, the US Dollar Index turned south on Monday and was last seen losing 0.45% at 90.90. The more-than-2% decline seen in the benchmark 10-year US Treasury bond yield is putting additional weight on the USD's shoulders.

Moreover, Wall Street's main indexes are up between 0.6% and 0.9%, making it difficult for the greenback to attract investors as a safe haven.

The Markit Manufacturing PMI in Canada fell to 57.2 in April from 58.5 in March but failed to trigger a significant market reaction. On the other hand, the ISM Manufacturing PMI in the US declined to 60.7 from 64.7, missing the analysts' estimate of 65. 

In the meantime, the barrel of West Texas Intermediate (WTI), which stayed relatively quiet around $63.50 during the first half of the day, is currently rising more than 1% at $64.30, helping the commodity-sensitive CAD preserve its strength.

Later in the session, FOMC Chairman Jerome Powell's speech will be watched closely by market participants.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.2285
Today Daily Change -0.0004
Today Daily Change % -0.03
Today daily open 1.2289
 
Trends
Daily SMA20 1.2488
Daily SMA50 1.2542
Daily SMA100 1.2643
Daily SMA200 1.2903
 
Levels
Previous Daily High 1.2323
Previous Daily Low 1.2266
Previous Weekly High 1.2491
Previous Weekly Low 1.2266
Previous Monthly High 1.2654
Previous Monthly Low 1.2266
Daily Fibonacci 38.2% 1.2301
Daily Fibonacci 61.8% 1.2288
Daily Pivot Point S1 1.2262
Daily Pivot Point S2 1.2236
Daily Pivot Point S3 1.2206
Daily Pivot Point R1 1.2319
Daily Pivot Point R2 1.2349
Daily Pivot Point R3 1.2376

 

 

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