The USDCAD, currently at 1.31730, appears to be at risk and susceptible to a decline in value above the 1.3140 level due to the prevailing risk-averse sentiment.

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• USD/CAD is looking vulnerable above 1.3140 amid a risk-off mood.

The pair currently trades last at 1.31730.

The previous day high was 1.3226 while the previous day low was 1.3143. The daily 38.2% Fib levels comes at 1.3194, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3175, expected to provide resistance.

The USD/CAD pair is struggling in maintaining its auction above the immediate support of 1.3140 in the European session. The Loonie asset is expected to deliver more downside as the US Dollar Index (DXY) has refreshed its day’s low at 102.64.

S&P500 futures are holding losses as investors turn cautious among investors ahead of the quarterly result season. The US Dollar Index is facing pressure as investors have started shrugging off risks associated with chances of more interest rate hikes from the Federal Reserve (Fed).

The US Dollar Index has delivered a breakdown of the consolidation formed in a range of below 102.80. Also, the US Treasury yields have faced immense pressure. The yields offered on 10-year US government bonds have dropped to near 3.69%.

Going forward, investors will keep the focus on the United States Durables Goods Orders data (May). As per the consensus, the economic data is seen contracting by 1.0% vs. an expansion of 1.1%. Durable Goods Orders excluding defense are seen as stagnant against a contraction of 0.7%. Scrutiny of the forward economic data indicates that fewer defense orders impacted the economic indicator.

Meanwhile, the Canadian Dollar is showing resilience ahead of the Consumer Price Index (CPI) data (May). As per the consensus, monthly inflation showed a pace of 0.5% vs. a velocity of 0.7%. Annualized inflation is seen softening to 3.4% vs. the former release of 4.4%. And, core inflation is expected to decelerate to 3.7% against the former release of 4.1%.

The release of the expected inflation report would provide luxury to the Bank of Canada (BoC) for keeping monetary policy steady.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3141 at the time of writing. Pair opened at 1.3183 and is trading with a change of -0.32 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.3347, 50 SMA 1.3446, 100 SMA @ 1.3505 and 200 SMA @ 1.3519.

The previous day high was 1.3226 while the previous day low was 1.3143. The daily 38.2% Fib levels comes at 1.3194, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3175, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3142, 1.3101, 1.306
• Pivot resistance is noted at 1.3225, 1.3267, 1.3308

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