USD/CAD plummets to 1.2825 as USD continues to weaken

The US Dollar remained well offered across its key rivals, with the USD/CAD pair extending its slide to Friday's swing low before retracing few pips to currently trade at 1.2835.

Following a volatile session on Friday, the pair opened sharply lower on Monday as receding 'Brexit' fears fueled global risk-on rally. Adding to it, rallying crude oil prices also seems to boost demand for commodity-linked currencies, like the Canadian Dollar, and drag the USD/CAD pair lower. 

The previous week saw the pair surging close to 1.3100 handle, before erasing majority of its weekly gains to settle below 1.2900 level. However, the pair seems to find some immediate support around 1.2825 level, which if broken is likely to accelerate the fall further in the near-term.

Technical levels to watch

Below 1.2825, leading to momentum break below 1.2800 level, is likely to accelerate the fall immediately towards 1.2770-60 horizontal support, which if broken paves way for further depreciating move back towards 1.2700 handle. Meanwhile on the upside, 1.2870 now seems to act as immediate resistance, above which the pair is likely to extend its recovery trend, beyond 1.2900 handle, towards 1.2950-60 strong resistance.