USD/CAD relentless fall unchecked, plunges to 1.2800 ahead of US CPI

The USD/CAD pair remained heavily offered and extending its slide for seventh consecutive day, plunged to the lowest level since June 24 ahead of US macro releases. 

Currently trading at 1.2810, within striking distance of 1.2800 handle, a broad based US Dollar sell-off accompanied with continuous rise in crude oil prices have been the key factors weighing heavily on the major. 

Next on tap is US CPI, housing starts and industrial production data, which if adds on the recent slew of disappointing releases from the US would further diminish prospects of an eventual Fed rate-hike action in 2016 and continue dragging the greenback lower. 

How strong has the move been?

USD/CAD spot is in oversold territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish. RSI is in neutral territory at 26.72, up from it’s last hourly close at 21.31, while ADX is trending above 30 at 50.66, up from 49.82 at the last hourly close.

Looking to a daily chart, we see that RSI is neutral at 41.57. The 200 SMA is currently at 1.2934, down from 1.3046 at the last period close, and declining on the hourly USD/CAD chart. Moving with a downward trend, the exponential average closing price is 1.3049.

Price levels to be considered

Immediate resistance ahead is seen at 1.2854 (Weekly Classic S1), 1.2859 (Daily Classic S2), 1.2891 (Daily Classic S1), 1.2900 (Hourly 20 EMA) and 1.2902 (Yesterday's Low). Meanwhile, next support to the downside can be found at 1.2811 (Daily Low), 1.2756 (Weekly Classic S2), 1.2587 (Weekly Classic S3) and 1.2530 (YTD Low).