FXStreet (Orlando) – The US Dollar is extending its decline against the Canadian Dollar as the pair is under pressure amid DXY weakness. After falling 120 pips from 1.2440, the USD/CAD is now testing lows since May 26 at 1.2315.
Currently, USD/CAD is trading at 1.2329, down 0.65% on the day, having posted a daily high at 1.2443 and low at 1.2316. USD/CAD spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish.
USD/CAD Forecast
Besides USD short term weakness, Yohay Elam from ForexCrunch remarked in the latest USD/CAD Forecast Poll that the “CAD stays strong after the excellent Canadian jobs report.”
In addition, Eric Theoret, Currency Strategist at Scotiabank, noted that that the near-term focus for USD/CAD has shifted to the downside: “USD/CAD short-term technicals: bullish-neutral—signals are softening to neutral and USD/CAD is falling further below its 9 day MA (1.2446). Focus turns to the 21 day MA at 1.2298. We note that recent gains have been limited above 1.2500.”
USD/CAD levels
If the pair extends declines below 1.2315, supports are at 1.2300 and 1.2275. To the upside, resistances are at 1.2370, 1.2385 and 1.2420.
(Market News Provided by FXstreet)