USD/CAD Eyeing 1.2500 Level to Extend Some Support
Weak USD GDP print and rising crude oil prices continued pressing the USD/CAD pair lower and the pair is now inching closer to 1.2500 handle, level that has not been tested since June 2015.
From 2016 peak of 1.4690 the pair has witnessed sharp fall and is now headed for its fifth consecutive week of losses, marking 14th week of decline out of the 17 trading weeks in 2016. On Friday, traders will closely watch the monthly Canadian GDP release February, which is expected register a decline of 0.1% m/m as against 0.6% growth recorded in the previous month.
The pair’s downward momentum is strong enough that even a slight positive GDP reading would be enough to push the pair through 1.2500 handle.
Technical levels to watch
On the immediate downside, traders will be looking for 1.2500 psychological mark to extend some support to the pair. With RSI already reading below 30, indicating near-term oversold conditions, the pair could possibly witness some bounce off the 1.2500 level.
On the upside, 1.2600 round figure remains immediate key resistance to conquer. A decisive strength above 1.2600 resistance seems to boost the pair further towards 1.2650 resistance.