USD/CAD drops below 10-DMA

The USD/CAD pair dropped below the 10-DMA level of 1.3434 in Asia despite the losses in the oil prices as weakness in the treasury yields weighed over the American dollar.

Drops for second day

The pair is trading lower for the second day. The demand for CAD spiked on Tuesday as the oil rallied to two-week high on renewed prospects of OPEC deal later this month.

Reports hit the wires that Iran’s output has neared its pre sanction level, which reduced the odds of Iran playing the hard ball during the OPEC meet.

The pair dropped in Asia for the second day, although losses seen today are more due to the weakness in the treasury yields. The focus today remains on the oil prices and the treasury yields.

USD/CAD Technical Levels

The spot was last seen trading around 1.3425 levels. Breach of the psychological level of 1.34 would expose support at 1.3344 (Nov 7 low) and 1.33 (zero figure). On the other hand, a move back above 1.3434 (Oct 28 high) would open doors for a revisit to 1.35 and 1.3589 (Nov 14 high).