USD/CAD finds support at 1.3000, bias remains bearish

• USD/CAD posts modest losses on the back of a retreat of the US dollar on a quiet Monday.
• The pair continues to move with a bearish bias in the short-term.

The USD/CAD pair moved during the US session between 1.3040 and 1.3000, modestly lower for the day. It held all day above last week lows and on top of 1.3000.

The short-term bias continues to point to the downside and a slide under 1.3000 could expose last week lows. After a modest rebound on Friday, today, USD/CAD turned again to the downside. The move took place amid a slide of the greenback across the board. The Canadian dollar was not among the top performers of the day and fell versus European currencies, AUD and NZD.

Economic data from the US had no impact and price action moved was limited on Monday. Data to be released on Tuesday, includes Manufacturing Shipments in Canada for July and in the US the capital flows numbers; later will be the turn for API crude oil inventories. The main attention is likely to continue on trade talks between the US and Canada and also on definitions about tariffs in the US to Chinese goods.

Technical levels

Technical indicators point to the downside ahead of the Asian session but the USD/CAD pair has a strong support at 1.2975/80 (last week lows). A break lower could clear the way to a slide to 1.2935 (intermediate support might be seen at 1.2960). On the upside, immediate resistance might be seen at 1.3025/30, followed by 1.3055 (Sep 14 high) and 1.3075/80 (Sep 12 high).