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 extends gains to fresh seven-week highs

The American dollar is under selling pressure amid a better market mood. EUR/USD above 1.1140 ahead of several Fed’s speakers that can rock markets.


GBP/USD trades around 1.29 amid speculation of Brexit vote

GBP/USD is trading around 1.29 as speculation mounts about the fate of the Brexit deal. UK PM Johnson faces a test in parliament after securing an accord with the EU.


USD/JPY: struggles near mid-108.00s pivotal point amid weaker USD

US Dollar Index slumped to multi-month lows below 97.50. 10-year US Treasury bond yield adds more than 1% on Friday. Wall Street's main indexes look to start the day little changed.


Gold turns flat above $1,490 as USD remains under pressure

After dropping to a daily low of $1,485, the XAU/USD pair staged a modest rebound during the American trading hours and turned flat on the day near $1,492.

Gold News

China’s downward economic path offers no escape from its trade problems

There were no surprises in China’s GDP figures as the government portrays an economy slipping steadily lower giving little promise of improvement or support for the waning global expansion.

Read more