- USD/CAD eases towards 1.25 after rejection near 1.2530.
- US dollar’s weakness and steady WTI weigh on the cross.
- Four-hourly chart points to an additional downside ahead of US data.
USD/CAD is witnessing choppy trading, although within a narrow range above 1.2500 in Friday’s European session.
The US dollar loses further ground, as the 10-year Treasury yields fall nearly 2% amid resurgent coronavirus concerns. Therefore, the major is feeling the pull of the gravity, now looking to challenge the 1.2500 support level.
Subdued trading seen in WTI price also fails to offer any support to the USD/CAD bulls, as attention now turns towards US Consumer Sentiment data for fresh direction on prices.
Looking at USD/CAD technically, the pair has faced rejection near 1.2530 on several occasions, as a dense cluster of resistance levels is stacked up there. At that point, the 50-Simple Moving Average (SMA) on the four-hour chart coincides with the 100-SMA.
The latest leg in the major was triggered after it breached the 200-SMA at 1.2519.
The Relative Strength Index (RSI) trades flatlined but below 50.00, backing the bearish bias.
A decisive close below the 1.2500 level could fuel a drop towards the August 11 low of 1.2489.
The psychological 1.2450 level could come into play if the sellers extend their control.
USD/CAD: Daily chart
On the flip side, acceptance above the said resistance near 1.2530 is needed on a four-hourly candlestick closing basis to retest the 1.2550 levels.
The August 10 high at 1.2589 could be back on the buyers’ radars, thereafter.