USD / CAD drops below July 30 low at 1.2422, last seen at 1.2409
Invest in yourself. See our forex education center.
Sellers will then look to break through the 1.2400 and there is not much support beyond as the bearish momentum may extend to the 1.2200-1.2300 region.
The 61.8 retracement level of the higher swing movement from May to August is seen at 1.2367, so perhaps it can be indicated that there is minor support in the meantime.
There are a lot of good things that have worked in favor of the loonie lately, but soaring oil prices continue to be the most obvious catalyst. WTI is trading above $ 81 today, 0.8% higher, and this continues to support the underlying currency.
Meanwhile, the dollar doesn’t look too hot despite mounting wage pressures from yesterday’s US CPI report, so there is that to consider when assessing sentiment this week.
I would still say the Loonie is still favored for further gains at this point and CAD / JPY is also another key pair to watch as it hits its highest level since January 2018 and is approaching key resistance around 91 , 58-64 at the moment. .