TenkoFX - Analytics

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    Broad USD weakness drags USD/CAD to session low near 1.2760 Haresh Menghani

    Extending its slide further below 1.2800 handle the USD/CAD pair dropped to a six day low level of 1.2762 on broad US Dollar selling pressure.The pair continues to slide despite of a downtick from session high level in crude oil prices. A broadly weaker US Dollar, as measured by the US Dollar index led by global risk-on sentiment on receding Brexit fears, seems to be weighing on the pair.Moreover, declining expectations of a Fed rate hike in the near-future has kept sentiment surrounding the greenback weak, which is seen supporting commodities - like oil, and boosting demand for commodity-linked currencies - like CAD.From technical perspective, the pair is trading close to its immediate support near 1.2765-60 region, which if broken decisively would open room for further depreciating move.Technical levels to watchBelow 1.2765-60 immediate support, the pair seems to accelerate the fall immediately towards 1.2700 round figure mark support, below which it could continue drifting lower towards its next major support around June swing lows support near 1.2660-55 region.Meanwhile on the upside, 1.2780-1.2800 handle now seems to have emerged as immediate resistance. A follow through buying interest above this immediate resistance has the potential to trigger a near-term short-covering bounce immediately towards 20-day SMA resistance around 1.2845-50 region ahead of a key resistance near 1.2900 round figure mark.


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