USD/CAD slides to over 1-month lows, below mid-1.3100s
- The USD selling remains unabated despite an uptick in the US bond yields.
- Bullish oil prices underpinned the loonie and added to the bearish pressure.
The bearish pressure surrounding the greenback remained unabated on the first day of a new trading week and dragged the USD/CAD pair to fresh multi-week lows, below mid-1.3100s in the last hour.
The pair extended its recent pullback from a six-month-old descending trend-line resistance – levels beyond the 1.3300 handle – and witnessed some follow-through selling on Monday, marking its fifth day of a negative move in the previous six.
Weighed down by weaker USD, bullish oil
Despite a modest pickup in the US Treasury bond yields, supported by the prevalent risk-on mood triggered by the latest trade optimism, the US dollar struggled to attract any buying interest and was seen as one of the key factors exerting some pressure on the major.
This coupled with an intraday bounce in crude oil prices – now back near the $60.00/barrel –provided an additional boost to the commodity-linked currency – loonie and further collaborated to the pair’s downfall to the lowest level since November 6.
It will now be interesting to see if the pair is able to find any support at lower levels or the ongoing slide marks a fresh bearish breakdown amid absent relevant market-moving economic releases, either from the US or Canada.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
