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Forex

Canadian dollar declines as USD rebounds

Canadian dollar declines as USD rebounds

Canadian dollar declines against USD as a renewed uptick in oil prices underpin Loonie and further collaborates to the USDCAD pair’s weaker tone.

April 11, OctaFX – The USDCAD pair traded with a mildly weaker tone through the Asian session on Friday and eroded a part of the previous session’s strong up-move to weekly tops.

A combination of supporting factors – a goodish US Dollar rebound and a sharp pullback in oil prices, helped the pair to catch some aggressive bids on Thursday and build on this week’s goodish bounce from sub-1.3300 level, or three-week lows. 

The overnight attempted USD recovery from near two-week lows, further supported by robust US economic data and a subsequent rise in the US Treasury bond yields, fizzled out on Friday and was seen as one of the key factors exerting some pressure on the major.

A renewed uptick in oil prices underpin Loonie

This coupled with a pickup in crude oil prices, now up nearly 0.4% for the day, underpinned the commodity-linked currency – Loonie and further collaborated to the pair’s weaker tone on the last trading day of the week, though the downside remained limited.

The pair managed to trim a part of its early slide to an intraday low level of 1.3358 and now seems more likely to witness a subdued/range-bound price action amid relatively thin economic docket – highlighting the release of Prelim UoM Consumer Sentiment from the US.

USDCAD technical outlook

Any subsequent up-move might continue to confront some fresh supply near the 1.3395-1.3400 region, above which the pair seems all set to aim towards testing the 1.3440-50 supply zone. On the flip side, the 1.3360-55 region now becomes immediate support to defend, which if broken might accelerate the fall further towards the 1.3320 horizontal support en-route the 1.3300 round figure mark.

Disclaimer

This article was provided by OctaFX. It should NOT substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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