- USD/CAD remained under some selling pressure for the second consecutive session on Thursday.
- The USD surrendered early gains after another disastrous US initial weekly jobless claims report.
- Strong follow-through recovery in oil undermined the loonie and contributed the pair’s downfall.
The USD/CAD pair finally broke down of its daily consolidation phase and dropped to fresh session lows, further below the 1.4100 mark in the last hour.
Following a range-bound trading action through the major part of Thursday trading action, the pair met with some fresh supply during the early North-American session and was being weighed down by a combination of factors.
The US dollar struggled to preserve its daily gains and witnessed a modest intraday pullback after data released from the US showed that another 4.4 million Americans filed unemployment-related benefits for the first time last week.
This comes amid some strong follow-through recovery in crude oil prices, which further underpinned demand for the commodity-linked currency – the loonie – and contributed to the pair’s intraday slide to multi-day lows.
It will now be interesting to see if the pair is able to attract any buying at lower levels or extends this week’s retracement slide from the vicinity of monthly tops, or levels beyond mid-1.4200s touched on Tuesday.
Technical levels to watch