USD/CAD plummets to fresh multi-month lows, fast approaching 1.30 mark

  • The USD fails to capitalize on the overnight post-CPI bounce and rising US bond yields.
  • Rallying Oil prices underpin Loonie and collaborated to the prevailing bearish pressure.

The USD/CAD pair plunged to 8-1/2 month lows in the last hour, with bears now eyeing a move towards challenging the key 1.30 psychological mark.

Having failed to capitalize on the overnight attempted recovery - led by hotter-than-expected US core CPI print, the pair came under some renewed selling pressure and finally broke through the previous multi-month swing lows support near the 1.3040 region.

A combination of factors - including the prevailing weaker tone around the US Dollar and some renewed pickup in Crude Oil prices, kept exerting bearish pressure for the third consecutive session and led to a fresh bearish breakdown on the last trading day of the week.

Despite a follow-through uptick in the US Treasury bond yields, the greenback failed to attract any buying interest, while the commodity-linked currency - Loonie remained supported by the recent bullish run in Oil prices to near six-week tops, levels beyond the $60.00/barrel mark.

Against the backdrop of escalating geopolitical tensions in the Middle East, Oil prices got an additional boost from a continuous decline in the US Crude inventories for the fourth consecutive weeks and the fact that US producers in the Gulf of Mexico have cut more than half their output because of a tropical storm.

Adding to this, possibilities of some near-term trading stops being triggered on a sustained break through the 1.3040 support area seems to have further aggravated the bearish pressure and contributed to the pair's ongoing slide to the lowest level since late-October 2018.

Moving ahead, Friday's US economic docket - featuring the release of PPI figures for June, coupled with comments by Chicago Fed President Charles Evans will now be looked upon for some short-term trading opportunities later during the early North-American session.

Technical levels to watch


Today last price 1.3026
Today Daily Change -0.0047
Today Daily Change % -0.36
Today daily open 1.3073
Daily SMA20 1.3169
Daily SMA50 1.3323
Daily SMA100 1.3339
Daily SMA200 1.3299
Previous Daily High 1.3092
Previous Daily Low 1.3042
Previous Weekly High 1.3147
Previous Weekly Low 1.3038
Previous Monthly High 1.3529
Previous Monthly Low 1.306
Daily Fibonacci 38.2% 1.3061
Daily Fibonacci 61.8% 1.3072
Daily Pivot Point S1 1.3046
Daily Pivot Point S2 1.3019
Daily Pivot Point S3 1.2996
Daily Pivot Point R1 1.3096
Daily Pivot Point R2 1.3119
Daily Pivot Point R3 1.3146



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD remains depressed but off daily lows

The EUR/USD pair is recovering from a daily low of 1.1216, although holding in negative territory for the day. US preliminary Michigan Consumer Sentiment Index improved by less-than-anticipated in July, coming in at 98.4 vs. the 98.5 expected.


GBP/USD trading marginally lower daily basis but above 1.2500

The Pound gave back some of its Thursday’s gain on dollar’s relief. The GBP/USD pair broke a daily descendant trend line coming from June’s high and holds above it, leaving little room for sellers to act.


USD/JPY: bears pausing, still in control

Japanese National Inflation steady at 0.7%YoY in June. US Michigan Consumer Sentiment Index expected at 98.5 in July. USD/JPY corrective advance falling short of signaling an interim bottom in place.


Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News

Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more