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USD/CAD slips toward two-month lows below 1.4000
The downtrend is reinforced by WTI pushing higher and USD/CAD sitting near 1.3932, with support seen near the 100-day and 200-day SMAs.
USD/CAD was under pressure on Monday as the U.S. dollar regained some ground after weakening in the wake of softer-than-expected U.S. Nonfarm Payrolls data, according to FXStreet. The pair was trading around 1.3932, near its lowest level in two months, with attention shifting to Wednesday's U.S. Consumer Price Index report.
FXStreet said the Canadian dollar found support from stronger-than-expected domestic labor data and higher oil prices, citing West Texas Intermediate at about $80.37 per barrel, up 5.2% on the day. The technical picture also points to bearish momentum, with USD/CAD holding below the 1.4000 psychological level and the 50-day simple moving average near 1.4075.
From a chart perspective, FXStreet noted a sequence of lower highs and lower lows since late June, plus sell-side signals from momentum indicators. The Relative Strength Index was near 33, approaching oversold territory, while MACD remained negative, keeping the near-term bias tilted to the downside.
On the downside, FXStreet highlighted the 100-day SMA near 1.3916 as initial support, followed by the 200-day SMA around 1.3853, where a decisive break could lead to a deeper decline. On the topside, the 1.4000 level is the immediate resistance, with a recovery above the 50-day SMA expected to ease bearish pressure.