FxWirePro: USD/CAD neutral in the near-term, scope for downward resumption
The USD/CAD pair declined on Monday as greenback extending losses after a central bank meeting in Jackson Hole, Wyoming as markets worried about the impact of Tropical Storm Harvey on the U.S. economy. The U.S. dollar, w…
The USD/CAD pair declined on Monday as greenback extending losses after a central bank meeting in Jackson Hole, Wyoming as markets worried about the impact of Tropical Storm Harvey on the U.S. economy.
The U.S. dollar, which slumped on Friday after U.S. Federal Reserve Chair Janet Yellen failed to mention monetary policy at a meeting of central bankers in Wyoming, extended its losses to 16-month lows against a basket of major currencies.
The greenback's weakness this year, along with a string of robust domestic economic data, has helped propel the Canadian dollar up 7.5 percent so far this year.
The ongoing weakness is set to continue for this pair as the resistance level at 1.2509 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
The immediate support can be seen at 1.2446, break below this level will expose the pair to next support level at 1.2420.
Major resistance can be seen at 1.2477, break above this level will expose the pair towards 1.2509 levels.
