USD/CAD: Sellers target 1.3450/40 break for further downside as greenback weakness prevails

• The quote struggles amid oil weakness and the USD pullback.
• Break of 1.3440 can validate further decline.

The USD/CAD pair is trading near 1.3460 during early Monday. The pair have been struggling within 1.3450-65 area off-late as late-March high limits the quote’s declines whereas overall pullback in the US Dollar (USD) questions the buyers.

The greenback has been on a back-foot recently an an increase in the Q1 2019 US GDP wasn’t backed by consumer spending.

Though, the pullback in oil prices confined the Loonie’s declines. The energy benchmark slid expectedly due to the US President Donald Trump’s comments that he has talked with Saudi Arabia and other oil producers to increase the oil flow.

While the US personal income and spending details are the only important data on the economic calendar, factors concerning crude oil moves will also be observed closely in order to determine the near-term direction of USD/CAD as oil is a major export item for Canada.

Personal income for March may grow 0.4% from 0.2% prior while personal spending will have two releases, i.e. for February and March, after January month figure flashed +0.1% increase.

Technical Analysis

Unless sliding beneath 1.3450/40 zone including highs marked since March 25, prices can continue aiming to break 1.3470 to revisit last week high near 1.3520. During the quote’s rise past-1.3520, 1.3570 seems crucial for bulls as it holds the gate for its rally to 1.3620 and then to multiple highs around 1.3665/70.

In a case where sellers manage to conquer 1.3440, 1.3400 and 1.3370 can become their follow-on targets while 50-day and 100-day simple moving average (SMA) confluence near 1.3345/40 may challenge bears afterward.