USD/CAD slides back to 3-day old trading range support near 1.2860 area
• Investors looked past yesterday’s disappointing Canadian macro releases.
• Renewed USD weakness prompts some fresh selling over the past hour.
The USD/CAD pair broke down of its Asian session consolidation phase and dropped back to the three-day-old trading range support near the 1.2865-60 region.
The pair sudden fall of around 30-pips over the past hour or so lacked any fundamental trigger and could be attributed to a modest US Dollar weakness. With investors looking past Thursday weaker Canadian macro releases, the USD price dynamics has been an exclusive driver of the pair's bearish momentum over the past 24-hours.
Meanwhile, possibilities of some short-term trading stops being triggered, on a break below the Asian session trading range support near the 1.2885, coupled with holiday-thinned liquidity conditions might have further collaborated towards aggravating the downfall.
The selling pressure, however, abated near the 1.2860 level, with traders refraining from placing aggressive bets during the Easter long weekend and ahead of next week's important macro releases, including the keenly watched NFP.
Technical levels to watch
Weakness below the 1.2860 level might now turn the pair vulnerable to head back towards retesting the 1.2800 support area before eventually dropping to test important moving averages confluence support near the 1.2700 handle.
On the upside, the 1.2885 level, followed by the 1.2900 handle might now act as immediate resistance levels, above which the pair could head back towards challenging the 1.2940 supply zone.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
