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USD/CAD remains confined in a range below mid-1.3000s, weekly lows

  • USD/CAD remains depressed for the third consecutive session on Friday.
  • Positive oil prices underpinned loonie and seemed to exert some pressure.
  • The downside remains limited near the 1.3030 strong horizontal support.

The USD/CAD pair remained depressed through the early European session on Friday and is currently placed near the lower end of its weekly trading range, around the 1.3035 region.

Following the previous session's directionless price action and a modest uptick earlier this Friday, the pair met with some fresh supply and has now drifted into the negative territory for the third consecutive session.

Traders preferred to stay on the sidelines

A modest uptick in crude oil prices – amid optimism over the phase one US-China trade deal – underpinned demand for the commodity-linked currency – loonie and exerted some downward pressure on the major.

On the other hand, the US dollar failed to capitalize on the previous session's mostly upbeat US economic data-led positive move and remained on the defensive, which further collaborated to the pair's weaker tone.

Meanwhile, a goodish pickup in the US Treasury bond yields helped limit any meaningful USD slide and seemed to be only factors lending some support, with bulls managing to hold the pair above the 1.3030 strong horizontal zone.

Moving ahead, market participants now look forward to a slew of second-tier US economic data for some impetus and in order to grab some short-term trading opportunities later during the early North-American session.

Technical levels to watch

 

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