FXStreet (Orlando) – The dollar continues trading lower across the market and there is no an exception against the Canadian Dollar as the USD / CAD dropped 150 pips from 1.2350 to test the 1.2200 level. The pair found buying interest and now operates 60 pips back at 1.2260.
Currently, USD/CAD is trading at 1.2260, down 0.63% on the day, having posted a daily high at 1.2354 and low at 1.2202. The hourly FXStreet OB/OS Index is showing oversold conditions, alongside the FXStreet Trend Index which is slightly bearish.
USD/CAD down on USD, crude oil
US weakness tone in the US Dollar after Kuroda comments is dragging the USD/CAD down. BoJ Kuroda said: “it is hard to see the Yen’s real effective exchange rate falling further.”
In adition, Oil is falling hard from near 1-month highs at 61.80 to price as low as 60.80 this morning. Oil is currently at 61.00, dragging down the USD/CAD too.
USD/CAD Forecast
If the pair extends bounce from 1.2200, it will find resistnces at 1.2280, 1.2300 and 1.2350. To the downside, supports are at 1.2200, 1.2180 and 1.2130.
(Market News Provided by FXstreet)