USD/CAD traded below the key support levels as it approached the lower monthly range amid the weakness in the U.S. dollar. The US dollar fell against the basket of major currencies after the Department of Commerce reported the second consecutive quarterly contraction in GDP. The world’s largest economy has not been immune from high inflation despite interest rate hikes from the central bank. The aggressive rate hike from the US Federal Reserve is weighing on the U.S. dollar as investors fear that the U.S. economy may tip into recession. If bears can break the 1.2800 Support level, then one can expect a downside continuation towards the 1.2700 level by the next few trading sessions.
Reference: Trading View
