USD/CAD tumbles to the 1.2250 area, fresh three-year low
- Loonie resumes upside versus US dollar after Tuesday’s pause.
- USD/CAD about to post the lowest close since September 2017.
The USD/CAD resumed the decline and dropped below 1.2265, hitting at 1.2251, the lowest intraday level since January 2018; on a daily basis, it could post the lowest close since September 2017. Despite rising versus the US dollar, the loonie is modestly lower against NZD and AUD on Wednesday.
The slide in USD/CAD took place amid a broad-based US dollar decline, amid risk appetite and lower US yields following mixed US data. The DXY stands at 91.25, flat for the day after being unable to break above 91.40. Data showed mixed reading from the service sector and an increase in private payrolls by 743K according to ADP, the strongest month since September of last year.
In Wall Street, equity prices offset a weak start and turned definitively positive. The Dow Jones gains 0.45%, and the Nasdaq climbs 0.61%. The 10-year yields dropped under 1.60%. Crude oil prices are off highs, with the WTI up 0.60% at $66.10.
The USD/CAD holds a clear bearish bias, and a close below 1.2260 would keep it under pressure. The next support area is 1.2250, followed by 1.2190. On the upside, resistance levels are located at 1.2265, 1.2285, and 1.2310.
Additional levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
