USD/CAD sold-off amid higher oil and broad USD selling

The offered tone around the US dollar keeps growing bigger as we move towards early Europe, knocking-off USD/CAD closer towards 1.28 handle.

USD/CAD drops below 10-DMA at 1.2845

Currently, the USD/CAD pair trades -0.47% lower at fresh session lows of 1.2832, having faced rejection just below 1.29 barrier. The USD/CAD pair extends its bearish momentum into early Europe, largely weighed down higher oil prices, which continue to underpin the resource linked-Loonie. Both crude benchmarks rally nearly 1% as demand for risky assets return on fading Brexit concerns.

While increased selling pressure behind the US dollar against its major peers, particularly the EUR and GPB amid Bremain news, also drags the USD/CHF deep into the red.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.2887/92 (daily R3/ 5-DMA) and 1.2970 (Jun 17 High). To the downside, immediate support might be located at 1.2800 (key support) and below that at 1.2747 (Jun 13 Low).