USD/CAD - Doji followed by drop to 100-DMA

The USD/CAD pair is losing height in Asia, now trading just short of the 100-DMA support of 1.3278 following Friday’s Doji candle.

USD is on the back foot

The drop in the USD/CAD in Asia is due to broad based USD sell-off and not due to oil prices, which are trading flat to positive.

The greenback is under pressure as the market  is pricing-in the risks associated with the Trump Presidency. The resulting safe haven demand for the treasuries is weighing over the yields, thus leading to USD weakness.

The USD/CAD pair is trading around 1.3280 levels, while the Dollar index is down 0.50% at 100.27 levels. The 10-year treasury is down almost four basis points.

USD/CAD Technical Levels

A break below 100-DMA level of 1.3278 would open doors for a drop to 1.3247 (5-DMA), under which a major support is seen at 1.32 (zero figure). On the higher side, a daily close above 1.3335 (Asian session high) could yield a re-test of 1.3350 (50-DMA). A daily close above 1.3388 (Friday’s high) would signal failure of Doji candle and revive bullishness.