After breaking below the inflation rate of 1.26 in the american session later, the pair USD/CAD has entered a consolidation phase prior to return to be under pressure again in the last hour. The couple, who updated a minimum of 2 weeks at 1.2560, now trading at 1.2570, losing more than 100 pips, or 0.85%, on the day.
This recent drop appears to be a product of a strong rebound in crude prices. At this time, the barrel of West Texas Intermediate is trading at $ 48.28, earning $ 1.2, or 2.5%, on the day. The fact that there are no triggers fundamental light was behind that movement suggests that it could have been caused by the flow of the weekend.
On the other hand, the Rate of Dollar remains bearish in the last session of the week, as investors refrain from taking big positions in dollars in the midst of the political turmoil in the U.S. According to a recent article written by Jonathan Swan of Axios, the staff of John Kelly is preparing a review on Steve Bannon, a senior Advisor to the White House, which could result in him losing his position. However, the index maintains modest gains this week, but might have difficulties to expand this movement in the short term.
The level of 1.2500 (psychological level) could be seen as the first technical support before 1.2460 (minimum of may 3, 2016) and 1.2415 (low of 27 July). On the positive side, the resistors are in 1.2680 (DMA 10), 1.2755 (DMA 50) and 1.2800 (psychological level).