USD/CAD continues its strip lower after breaking below the 13 April support and the 100-day moving average

USD/CAD D1 02-06

It is still largely about risk and the dollar, and higher oil prices is also helping the loonie stay more underpinned in recent weeks as we see USD/CAD fall further towards 1.3500.

The pair is extending a drop after the recent pause at the 100-day MA (red line) but the breakdown yesterday is extending with the dollar once again faltering across the board amid more positive risk sentiment in the market.

The next key support level that sellers will be eyeing is the 200-day MA (blue line) @ 1.3461.

Break below that and it opens up the way towards the support region closer to 1.3345-83 as seen from the swing highs in the second-half of last year.

It is tough to fight the momentum trades in the market at the moment and this chart is also one that continues to work against the dollar over the past few days.