USD/CAD extends losses, nears 1.2900

USD/CAD is extending losses into a sixth consecutive day on Monday, as the greenback underperforms across the board and oil prices continue to support the loonie.

USD/CAD broke below the 100-day SMA and made a 1-month low of 1.2910 in recent dealings. At time of writing, the pair is trading at 1.2915, 0.35% lower on the day. 

On Friday, disappointing US retail sales and PPI data raised doubts about the state of the US economy and the likelihood of another rate hike by the Fed before the year end, which has been weighing on the US dollar. On the other hand, the loonie is being supported by oil rally, as crude glut concerns are being overlooked by investors at the moment, with WTI rising above $45.00 a barrel.

USD/CAD levels to watch

As for technical levels, next supports are seen at 1.2900 (psychological level), 1.2860 (Jul 15 low) and 1.2830 (Jul 4 low). On the other hand, immediate resistances line up at 1.2979 (50-day SMA), 1.3055 (10-day SMA) and 1.3079 (Aug 11 high).