USD/CAD continued its downward trend for three consecutive days, hitting a two-week low around 1.3850 (down around 0.30%).
✅ Fundamental Dynamics: "Double Weakness"
The pair is experiencing pressure from both its constituent currencies:
- ⚡USD Pressure Factors: News of a two-week ceasefire between the US and Iran has crushed safe-haven demand for the greenback. The DXY slumped to a one-month low as diplomatic optimism returned.
- ⚡CAD (Loonie) Pressure Factors: Confirmation of the opening of the Strait of Hormuz triggered a massive sell-off in crude oil. As Canada is a major oil exporter, the fall in commodity prices weakened the CAD, preventing the USD/CAD pair from plunging further despite the significant USD weakness.
✅ Key Levels to Watch
- ⚡Key Resistance (1.3970): A daily close above this level is needed to revive the bullish bias towards the 1.4050 area.
- ⚡Nearest Resistance (1.3925): The recent high that must be broken to halt the weekly downtrend.
- ⚡Critical Support (1.3815): A sustained break below this level will confirm a trend change to bearish.
- ⚡Downside Target (1.3750): A target for sellers if the 1.3815 level is successfully broken.
- ⚡Short-Term Floor (1.3680): The next major support level in case of further, broader selling.
✅ Fundamental Dynamics: "Double Weakness"
The pair is experiencing pressure from both its constituent currencies:
- ⚡USD Pressure Factors: News of a two-week ceasefire between the US and Iran has crushed safe-haven demand for the greenback. The DXY slumped to a one-month low as diplomatic optimism returned.
- ⚡CAD (Loonie) Pressure Factors: Confirmation of the opening of the Strait of Hormuz triggered a massive sell-off in crude oil. As Canada is a major oil exporter, the fall in commodity prices weakened the CAD, preventing the USD/CAD pair from plunging further despite the significant USD weakness.
✅ Key Levels to Watch
- ⚡Key Resistance (1.3970): A daily close above this level is needed to revive the bullish bias towards the 1.4050 area.
- ⚡Nearest Resistance (1.3925): The recent high that must be broken to halt the weekly downtrend.
- ⚡Critical Support (1.3815): A sustained break below this level will confirm a trend change to bearish.
- ⚡Downside Target (1.3750): A target for sellers if the 1.3815 level is successfully broken.
- ⚡Short-Term Floor (1.3680): The next major support level in case of further, broader selling.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.