USD/CAD to extend its decline towards the 1.2420 July low – Commerzbank

USD/CAD recently failed at the 1.2950/60 pivot. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, looks for further losses to 1.2516/1.2420 and potentially the low 1.20 region.

The short-term uptrend has been eroded

“The sell-off has eroded the two-month uptrend. The 55-day ma and late July low at 1.2516/1.2420, are exposed.”

“Failure at the 1.2516/1.2420 area is expected and will re-target the 1.2005 May low.”