Session lows touched 1.2972 but price momentum appears to have stalled
The dollar's weakness is having a bit of a breather at the moment, and it is a timely one if you look at the USD/CAD hourly chart.
The pair's decline today appears to have stalled in the region of support from last week's low between the 3 August low and the 1 August low. The range there is 1.2968 to 1.2976. For now, these near-term support levels is where buyers are leaning on to defend price from falling further in the session.
Apart from the dollar's weakness, oil prices are holding up well recovering from the declines seen in late overnight trading. That is another factor to consider to support the loonie today.
But the main driver for the loonie will still be NAFTA talks and a deal may be closer than one would think - so that could be another tailwind for the Canadian dollar moving forward.
However, with all things political it is not done until it is done. So, we'll still have to wait for that before seeing any real price action as a result.
For now though, look out for the support levels mentioned above. If they give way, then there could be further room to drop for USD/CAD in the near-term.
