USD/CAD retreats further below mid-1.3200s amid bullish oil prices
• On offers for the second straight session amid some renewed USD selling bias.
• Bullish oil prices underpin Loonie and add to the ongoing retracement slide.
The USD/CAD pair extended last week’s retracement slide from three-week tops and traded with a negative bias for the second straight session on Monday.
Against the backdrop of rising hopes of further progress in the US-China trade talks, the US Dollar was further pressurized by the fact that the US President Donald Trump declared a national emergency on border security and retreated further from YTD tops set on Friday.
This coupled with the ongoing bullish run in oil prices, with WTI crude oil rising above the $56.00/barrel mark to hit a 3-month high, underpinned the commodity-linked currency Loonie and further collaborated to the pair’s weaker tone at the start of a new trading week.
It would now be interesting to see if the pair finds any support at lower levels or is able to defend the 1.3200 round figure mark amid absent relevant market moving economic releases on the back of President’s Day holiday in the US as well as provincial holidays in Canada.
Technical levels to watch
On a sustained weakness below the 1.3200 handle, the pair is likely to accelerate the fall towards challenging the very important 200-day SMA support, around the 1.3140 region, en-route the 1.3100 round figure mark. On the flip side, immediate resistance is pegged near the 1.3255 region, above which the pair is likely to make a fresh attempt towards reclaiming the 1.3300 round figure mark.