USD/CAD slides further below 1.2500, closer to multi-week lows amid weaker USD

  • The prevalent USD bearish sentiment prompted fresh selling around USD/CAD on Monday.
  • Reduced Fed rate hike bets, sliding US bond yields continued undermining the greenback.
  • The set-up favours bearish traders and supports prospects for an extension of the downfall.

The USD witnessed some selling during the early European session and dragged the USD/CAD pair below the key 1.2500 psychological mark. The pair has now dropped back closer to multi-week lows touched last Thursday and was last seen hovering around the 1.2485 region.

The pair struggled to capitalize on its early uptick, instead met with a fresh supply near the 1.2525-30 area and turned lower for the second consecutive session on Monday. This marked the fourth day of a negative move in the previous five and was exclusively sponsored by the prevalent bearish sentiment surrounding the US dollar.

Despite the incoming strong US economic data, investors seem convinced that the Fed will keep interest rates near zero levels for a longer period. This was evident from the recent decline in the yield on the benchmark 10-year US government bond, which retreated further from over one-year tops touched in March and sank to 1.5280% last week.

Meanwhile, renewed fears about another dangerous wave of coronavirus infections globally took its toll on the global risk sentiment, though failed to provide any respite to the safe-haven USD. Even a subdued action around crude oil prices, which tend to influence the commodity-linked loonie, also did little to lend any support to the USD/CAD pair.

From a technical perspective, weakness back below the 1.2500 mark adds credence to last week's bearish breakthrough a short-term trading range and supports prospects for a further decline. Hence, a subsequent slide back towards the 1.2400 mark, en-route multi-year lows near the 1.2365 region, looks a distinct possibility amid an empty economic docket.

Technical levels to watch


Today last price 1.2487
Today Daily Change -0.0021
Today Daily Change % -0.17
Today daily open 1.2508
Daily SMA20 1.2562
Daily SMA50 1.2593
Daily SMA100 1.2684
Daily SMA200 1.2957
Previous Daily High 1.2559
Previous Daily Low 1.2494
Previous Weekly High 1.263
Previous Weekly Low 1.2477
Previous Monthly High 1.274
Previous Monthly Low 1.2365
Daily Fibonacci 38.2% 1.2519
Daily Fibonacci 61.8% 1.2535
Daily Pivot Point S1 1.2481
Daily Pivot Point S2 1.2456
Daily Pivot Point S3 1.2416
Daily Pivot Point R1 1.2546
Daily Pivot Point R2 1.2585
Daily Pivot Point R3 1.2611



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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD rises toward after US retail sales miss estimates

EUR/USD is holding onto its gains above 1.21 after the US reported no change in April's retail sales, below 1% expected. The Control Group plunged by 1.5%. The dollar is falling across the pond. US Consumer Sentiment missed with 82.8, yet inflation expectations surged to 4.6%.


GBP/USD trades below 1.41 after US consumption data

GBP/USD is trading above 1.4050, benefitting from the better market mood. Sterling is shrugging off worries about the spread of new virus variants, which may delay the reopening. US retail sales missed estimates, causing jitters. 


EUR/USD Weekly Forecast: Fed may fuel the next leg of rally, bulls eye 1.2240

EUR/USD has been extending its gains amid dovish Fed policy and the eurozone's vaccination drive.   Eurozone PMIs and Fed meeting minutes are set to move the currency pair. Mid-May's daily chart is pointing to further gains.The FX Poll is showing mild downside pressure. 

Read full analysis

Dogecoin bulls hold the key for 40% gains

Dogecoin price is at a pivotal point, resulting in a 40% upswing or 30% sell-off. A swift surge beyond $0.522 and a retest of this level confirms a bullish outlook. If DOGE slices through the $0.351, it will put an end to the optimistic narrative.

Read more

AMC Entertainment Holdings surges on triangle breakout, targets $14.54 and $20

AMC has done it again and in the process is stealing the GameStop crown. Supposedly a movie about the whole GameStop saga is in the works, but if AMC has its way it will be stealing the show. Coming to an AMC theatre near you: "AMC to the moon". AMC closed Thursday at $12.77 for a nice gain of 23.7%, thank you very much.

Read more