• The USD selling remains unabated and keeps exerting downward pressure.
• Subdued crude oil prices do little to lend any support and stall the downfall.
The USD/CAD pair held on to its weaker tone for the third consecutive session on Tuesday and is currently placed just a few pips above 1-1/2 week lows touched earlier.
The pair extended last week's sharp retracement slide from over three-week tops, triggered by hotter-than-expected Canadian consumer inflation figures, and was further weighed down by the prevalent US Dollar selling bias.
The US President Donald Trump criticized the Fed Chair Jerome Powell for raising interest rates and triggered a broad-based USD sell-off on the first day of a new week. Broad-based USD weakness remained a key theme through the early European session on Tuesday and kept exerting downward pressure on the major.
Meanwhile, a subdued action around crude oil prices did little to influence the commodity-linked Loonie, while technical selling below the 1.3055-50 strong horizontal support was now seen adding to the pair's weaker tone.
In absence of any major market moving economic releases, the pair remains at the mercy of broader market sentiment surrounding the buck, with a follow-through weakness, even below the key 1.30 psychological mark, now looking a distinct possibility.
Technical levels to watch
A fresh wave of selling pressure has the potential to continue dragging the pair below the mentioned handle towards testing 100-day SMA support, currently near the 1.2980 region. On the flip side, any attempted recovery move might now confront fresh supply near the 1.3050-55 area, above which the pair is likely to aim back towards reclaiming the 1.3100 round figure mark.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD recovers modestly from 2023-low, trades below 1.0500
EUR/USD dropped to a fresh 2023-low near 1.0450 on Tuesday before staging a modest rebound. After the data from the US showed that the number of job openings rose unexpectedly in August, the US Dollar extended its rally and caused the pair to turn south in the American session.
GBP/USD holds above 1.2050 after US data
GBP/USD fell sharply to the 1.2050 area with the immediate reaction to the US job openings data but managed to its losses. As safe-haven flows continue to dominate the financial markets, however, the pair finds it difficult to gather recovery momentum.
Gold moves closer to $1,800 amid risk-off flows Premium
Gold price stays under modest bearish pressure and trades below $1,830 in the second half of the day on Tuesday. The benchmark 10-year US Treasury bond yield holds at fresh multi-year highs above 4.7% after upbeat US data, not allowing XAU/USD to gain traction.
Chainlink price still trapped in range despite exhausted macro downtrend
Chainlink price eyes the upper boundary of a range at $8.148. It comes after the macro downtrend concluded, and could be the path to a new confirmed macro uptrend for LINK.
S&P 500 Forecast: 4,300 becomes resistance for lagging index
S&P 500 lost 0.74% last week, its fourth consecutive losing streak. Equity index stayed uncertain and closed flat on Monday. Tuesday begins with index shedding ground once more as 4,300 turns into resistance.