USD/CAD resumes downtrend amid WTI strength
- Bears dominate the USD/CAD moves amid WTI strength, anti-USD moves.
- Sustained trading below key MA portrays the pair’s weakness.
With the Crude prices trading near the monthly top and the US Dollar (USD) continues to linger across the board, the USD/CAD pair resumes its latest downturn clock in 1.3191 during early Monday.
WTI, the global benchmark for crude oil, rallies to the month’s high after the Bloomberg news report that the US President Donald Trump stands ready to announce fresh sanction on Iran.
While the increase in prices of the key export item, i.e. Crude, plays a major part in the pair’s latest declines, the market’s anti-USD mode also lured sellers towards the pair.
Additionally, comments from Chinese lawmakers rekindled expectations of positive trade talks between the US and China at the sidelines of the G20.
Given the greenback weakness diverts the buyers towards commodity-linked currencies, coupled with a lack of data, traders might be more interested in political plays surrounding the US in order to determine near-term market sentiment.
Technical Analysis
Pair’s sustained trading below June 10 low near 1.3242 continues to signal brighter chances of its further declines to 1.3150 and then to late-February bottom surrounding 1.3110.
On the upside break of 1.3242, 200-day simple moving average (SMA) near 1.3283 can question buyers.