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- USD/CAD slump for the first time in three days after posting losses of almost 1.70%.
- USD/CAD fell amid US dollar weakness across the board.
- USD/CAD: The 1-hour chart depicts a triple top chart pattern, with a target of 1.2530.
USD/CAD struggles to gain traction above 1.2600, is falling 0.31%, trading at 1.2549 during the New York session at the time of writing. The Canadian dollar has been under selling pressure, as witnessed by the price action in the last three days, down almost 1.70%. Nevertheless, on Friday, the Loonie has recovered some ground, mainly driven by USD profit-taking.
DXY falls as the weekend approaches but holds to the 95 figure
Meanwhile, the greenback is falling against most G8 currencies. The US Dollar Index measurement of the buck against six currencies slides 0.02%, sitting at 95.12. Contrarily, US T-bond yields rise, with the 10-year benchmark note rising two basis points, currently at 1.58%.
USD/CAD direction would lie in the hands of the Bank of Canada (BoC) and US dollar dynamics. However, on Wednesday, US inflation rose to a 30-year high above 6%, which spurred an upside move in US Treasuries and the US dollar.
On the macroeconomic front, the US economic docket featured the University of Michigan Consumer Sentiment Index for November edged lower to 66.8, lower than the 71.7 in October, marking the lowest reading since November 2011.
USD/CAD Price Forecast: Technical outlook
The 1-hour chart depicts a technical move that spurred the recovery of the Loonie. A triple-top chart pattern formed around the 1.2570-1.2600 range. The price broke below the neckline around 1.2567, which would act as resistance in case of an upward swing. Further, the USD/CAD price is under the 50-simple moving average (SMA), exerting additional selling pressure on the pair. The triple-top target is 1.2530, an area that confluences with the 50-day moving average (DMA).
A break below the triple’s top target would expose the 100-SMA around the 1.2500 figure.