USD/CAD extends week-long losing streak, attacks 1.2900

The USD/CAD pair extends its downward spiral into a seventh day today, and now looks to attack 1.29 handle amid stabilizing oil prices and a broadly lower US dollar.

USD/CAD breaches key support at 1.2945

Currently, the USD/CAD pair drops -0.10% to fresh session lows at 1.2910, heading for a test of 1.2900 levels. The US dollar keeps falling against its Canadian counterpart this session, now pushing USD/CAD further towards Monday’s low, as the greenback remains heavily sold-off on the back of positions adjustment ahead of the US macro updates due later today.

Moreover, stalled selling in oil prices also underpins the resource-linked Loonie somewhat, with both crude benchmarks consolidating at present, down nearly -0.50%.

Attention now turns towards the economic releases due on the cards in the American session, with the Canadian manufacturing sales and US CPI likely to have significant impact on the prices.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.2945 (100 & 5-DMA) and 1.3000 (round figure). To the downside, immediate support might be located at 1.2898 (Aug 15 low) and below that at 1.2857 (five-week lows).