- USD / CAD was down for the second day in a row and fell to a two-week low.
- The USD struggled to preserve its intraday gains and acted as a headwind for the pair.
- The rising channel support could help limit losses amid falling crude prices.
The pair USD / CAD it fell in the middle of the European session and fell to a two-week low around the 1.2770 region in the last hour.
After an initial rally in the 1.2810-15 area, the USD / CAD encountered a new offer on Thursday and was down for the second day in a row. This also marked the third day of a negative movement in the previous four sessions and was sponsored by the appearance of some sales of US dollars at higher levels.
The underlying bullish sentiment continued to act as a headwind for the safe-haven dollar, which was further pressured by the decline in US Treasury yields despite the continued rise in new COVID cases. -19, investors remain bullish amid signs that the Omicron variant could be less severe than feared.
This was evident from an extension of the recent bullish streak in equity markets. This helped offset falling crude oil prices, which tend to undermine the commodity-linked Canadian dollar. However, the USD / CAD pair has managed to defend the uptrend channel support, which warrants some caution for bearish traders.
Traders will be guided by oil price dynamics to seize some near-term opportunities around USD / CAD.
Technical levels
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