USD / CAD hits two-week lows near 1.2500

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  • USD / CAD falls to test the 1.2500 level as the US dollar weakens.
  • Wall Street is skyrocketing, reaching new all-time highs.

The USD / CAD is falling on Monday amid a weaker US dollar. The pair recently fell to 1.2506, hitting its lowest level in two weeks. It remains near the lows with the bearish tone intact.

The general decline of the US dollar weighs on the USD / CAD. A positive risk appetite sentiment favored demand for riskier assets. Yields on US bonds have risen, but not significantly. The 10-year yield stands at 1.71%, away from the daily highs.

US economic data beat expectations, with the ISM services sector at a record high. The figures continue to support expectations about the superior performance of the US economy.

Short-term technical outlook

USD / CAD has a bearish bias in the short term, with the price below the key moving averages on the four-hour charts. On the downside, the next strong support is seen around 1.2495. A break below 1.2490 would suggest more losses ahead.

A bounce should face resistance at 1.2525 / 30 and then 1.2560. A consolidation above 1.2600 would negate the negative bias in the short term and likely lead to some side trades down the road. A rally above 1.2640 would point to a stronger US dollar.

Technical levels

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