Trumps NAFTA concession can't keep the CAD supported
Pres. Trump said that he agreed NOT to terminate NAFTA last night, and that helped to send the USDCAD tumbling lower.
The price fell from high levels at 1.3646 to a low of 1.3528. At the lows, the price tested the 100 hour MA at 1.3533 AND the 50% of the weeks low to high trading range at 1.2528. That support level found buyers willing to trade against the low risk defining level.
Looking at the 5 minute chart the price skimmed along that MA for about an hour and a half before throwing in the bearish towel and starting a move back higher.
The move higher has now taken the price back to unchanged at 1.3620 and is now breaking and extending above that level. The pair is reaching to "complete the down and up lap" to the day's highs at 1.36468. A move above that, and the USDCAD is trading at the highest level since Feb 2016.
Crude oil prices are contributing to the CAD weakness today. It has tumbled -1.28% or -2.60% on the day.
The NAFTA is one side of the story. The other side was presented by Adam Button on BNN this week. If you have not seen his interview yet, watch it by clicking below...