FX.co ★ USD/CAD

The US Dollar (USD) is heading for its third straight day of losses against the Canadian Dollar (CAD) on Friday, amid risk aversion as US Treasury yields fall on the back of strong Oil prices that are helping the Canadian Dollar. The USD/CAD currency pair is attempting to touch six-week lows of 1.3968 and is set to decline more than 2% in a three-week downtrend. Fears of an impending bubble in artificial intelligence stocks, following weak results from Google Alphabet, have driven an exodus from stocks to the relative safety of US Government Bonds in US and Asian trading sessions. The reversal in US Treasury yields has continued, with the US 10-year yield down more than 30 basis points in October. The Loonie is also still benefiting from elevated oil prices, Canada's biggest export. At the moment, Brent crude is above 112.00 and is expected to close with more than 20% appreciation due to a lack of agreement between the US and Iran and attacks on ships passing through the Strait of Hormuz. USD/CAD is trading near 1.3961 and showing a bearish trend; RSI (14) on the 4-hour chart is at 32.5 and near oversold territory, while MACD is just below the zero line, suggesting bears are dominating. A breakdown below the 1.3968 support zone (low of October 23) will draw attention to the mid-September lows near 1.3900 and the 78.6% Fibonacci retracement near 1.3875. For bulls, it will be required to cross Thursday's high near the psychological mark of 1.4000 and the October 21-23 high of 1.4070-1.4080.