USD/CAD drifts into negative territory for fourth straight session
• Moves within striking distance of Friday’s swing low.
• Bullish oil prices underpinning commodity-linked Loonie.
The USD/CAD pair failed to build on early uptick to the 1.2780 region and has now drifted into negative territory for the fourth consecutive session.
Against the backdrop of a subdued US Dollar price action, led by softer tone around the US Treasury bond yields, a strong follow-through uptick in crude oil prices underpinned the commodity-linked currency - Loonie and has been one of the key factors weighing on the major.
Currently hovering around mid-1.2700s, the pair moved back within striking distance of Friday's swing lows touched in the aftermath of Friday's US/Canadian labor market reports. A follow-through weakness, amid the prevailing bullish sentiment around oil markets and an empty economic docket, now seems a distinct possibility.
Technical levels to watch
Immediate support remains near 1.2710-1.2700 zone, below which the pair is likely to extend the corrective slide back towards retesting 100-day SMA support near the 1.2615 region.
On the upside, momentum above 1.2780 level (session tops) could assist the pair to surpass the 1.2800 handle and head towards testing its next major hurdle near the 1.2840-45 horizontal zone.