USD/CAD hits 1-week low

FXStreet (Córdoba) - USD/CAD fell further during the American session and printed fresh daily lows as the dollar weakened on the back of US data while the loonie tracked oil’s gains.

USD/CAD broke below the 1.2480 support zone and accelerated to a low of 1.2421, last seen a week ago. At time of writing, the pair is trading at 1.2440, recording a 0.53% loss on the day. USD/CAD is on track to post its second weekly decline in a row, as the Canadian currency has benefited from oil prices recovery.

USD/CAD technical perspective

“USD/CAD continues to trade with a softer bias on the charts, with spot heading for a consecutive lower weekly close for the first time since mid-November… we do not exclude the risk of a drop back to the upper 1.23s near-term”, said the TD Securities team. “The grind lower so far this month may need to run a little lower still to work off some of the USD’s overbought status”.

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