- USD/CAD edged lower for the fourth consecutive session on Thursday amid sustained USD selling.
- The prevalent upbeat market mood was seen as a key factor weighing on the safe-haven greenback.
The USD/CAD pair remained depressed through the Asian session and was last seen trading near two-week lows, just below mid-1.2700s.
The pair extended its recent pullback from the levels at just above mid-1.2900s and witnessed some follow-through selling for the fourth consecutive session on Thursday. The downtick also marked the fifth day of a negative move in the previous six sessions and was exclusively sponsored by sustained selling surrounding the US dollar.
In fact, the USD Index tumbled to fresh multi-year lows amid the prevalent risk-on environment and the likelihood of additional US financial aid.
Although the 1.2700 psychological round figure mark acts as key support which restricts short-term USD/CAD declines, further weakness south could be seen. If the quote remains downbeat past 1.2740, it can then face an intermediate halt during the south run to refresh a monthly low near the 1.2700 round figure mark which provides strong support. Meanwhile, 1.2770 guards the immediate upside of USD/CAD.
