In the Asian session, the USD/CAD pair edged lower as the Canadian dollar strengthened against its American counterpart. The pair returned to yesterday’s lows and is moving downwards on negative US dollar dynamics. The greenback is again losing ground against the basket of major currencies.
Besides, the Canadian dollar gets support from the positive sentiment in the energy market. Oil is getting better and the prices are rising on optimism over the coronavirus vaccine.
In the first half of the day, I expect the pair to go through a moderate upward correction. However, the downtrend is likely to prevail. The pair is currently trading in the bear market.
A possible pivot point is seen at 1.3085, and I’m going to sell below this mark with the targets at 1.3005 and 1.2975.
Alternatively, the pair may start to rise until it breaks above the 1.3085 level and settles there. Then, it may test the levels of 1.3105 and 1.3125.