USD/CAD falls to six-day lows below 1.2850

• Dollar Loses Ground Across Market, DXY Down 0.27%.
• Markets will be closed in the US, in Canada the BoC survey is published.
• USD/CAD approaches last week’s low.

USD/CAD is falling at the start of the week, breaking important short-term support. The declines are fueled by broad dollar weakness. The pair trades below 1.2840, at a six-day low.

Enabling more casualties?

After briefly trading above 1.2900 in the Asian session, the USD/CAD changed direction and started to pull back. The declines accelerated after losing 1.2860 (30 Jun low) and the price reached as low as 1.2836. It remains near the bottom with the negative tone intact and looking at last week’s low of 1.2818.

If confirmed around current levels, USD/CAD would be cutting several days of sideways moves without moving away from 1.2880. It would also be coming back below the 20-day moving average that is passing through 1.2857. The short-term outlook would become biased to the downside.

Should the pair bounce back above 1.2860, the dollar would return to last week’s range. while of give a close above 1.2900, it would generate a signal of more rises in the short term.

quiet start

Financial markets are trading relatively calm on Monday. Wall Street will not trade due to a holiday in the US The dollar is retreating moderately which is pushing the USD/CAD lower. Oil does not register significant variations and US stock futures lose 0.15% on average.

There will be no US data on Monday. Canada the business survey will be published Bank of Canada and consumer expectations (including inflation), which may attract attention ahead of the July 13 monetary policy meeting. The economic calendar shows two key days ahead: Wednesday with the minutes of the last meeting of the fed and on Friday with the employment reports from Canada and the US.

Technical levels