29.12 - Fresh selling around USD/CAD on Tuesday
- by George Solotarov
The USD remained depressed through the early European session and dragged the USD/CAD pair to strong horizontal support near the 1.2815 region. Following the previous day's two-way/directionless price moves, the pair met with some fresh supply on Tuesday and was pressured by a combination of factors.
The US dollar was back under some selling pressure amid progress on additional US fiscal stimulus measures. The House of Representatives voted to increase the amount of COVID-19 relief payments to qualified Americans from $600 to $2,000 on Monday. Hence, it will be prudent to wait for some follow-through selling below the 1.2800 mark before confirming that the recent USD/CAD recovery from multi-year lows might have already run out of steam.