USD/CAD retests the weekly low on Friday and is pressured by a combination of factors.
Fed rate cut bets weighs on the USD, while an uptick in Oil prices underpins the Loonie.
The downside remains cushioned ahead of the monthly jobs data from the US and Canada.
The USD/CAD pair attracts sellers for the third straight day and remains depressed below the 1.3500 psychological mark, or the weekly low through the early European session on Friday.
The US Dollar (USD) selling bias remains unabated in the wake of bets for a larger interest rate cut by the Federal Reserve (Fed) in September. Apart from this, an uptick in Crude Oil prices is seen underpinning the commodity-linked Loonie and exerting downward pressure on the USD/CAD pair. The downside, however, seems limited as traders might opt to wait for the release of the crucial monthly employment details from the US and Canada, due later during the North American session.
Traders, however, need to wait for some follow-through selling below the 1.3485 region, or the weekly low, before positioning for any further losses. The USD/CAD pair might then accelerate the slide towards the multi-month trough, around the 1.3440 area touched last week before eventually dropping to the March monthly swing low, around the 1.3420 region. The downward trajectory could extend further towards the 1.3400 mark en route to the next relevant support near the 1.3365-1.3360 zone.
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