The US dollar is trading weak against the loonie in today’s trading, after trying to stay above 1.3400 in Asian trading.
Now, bears are trying to push it down to 1.3350 levels; supported by the across-the-market weakness in the US dollar after the latest ISM data pointed out dwindling manufacturing-sector employment numbers and reports emerged about slow progress in the US fiscal-aid talks.
Canadian dollar showed strength as it tracked other commodity-focused currencies despite the WTI oil price moving below 41 dollars. The pair will now seek fresh ammunition from the US Factory Orders and Canadian Markit Manufacturing PMI data.
The technical picture of USD/CAD suggests further downside from here, at least in the short-term; the pair has formed a bear flag breakdown on the hourly sticks, along with bearish RSI.
The psychologically important 1.3350 levels will be under test soon if bears continue to hold their grip. Bulls can attempt a recovery if the pair breaks the downward-sloping 21-hourly Simple Moving Average (SMA) at 1.3401.
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