The USD/CAD pair breached the 1.2700 support decisively on Monday. Terence Wu, FX Strategists at OCBC Bank, is closely watching the loonie as the 1.2600 level is likely to attract.

Key quotes

“The break below 1.2700 leaves the part edging towards the 1.2600 level, which coincides with the Jan lows. Any further breach should leave the pair open to further downside.” 

“Firm crude complex imparts downward pressure for now.”