The dollar is now the weakest performing major currency on the day
How the tables have turned. All major currencies are trading to near session highs against the greenback now with USD/CAD falling to a low of 1.2938 on the day:
The pair broke below the 100-day MA (red line) in overnight trading and sellers are capitalising on that with the weaker dollar ahead of US trading. With reinvigorated hopes of a NAFTA deal (or trilateral deal involving US and Mexico), the loonie has managed to post decent gains in overnight trading but there's still the risk that the deal may leave out Canada in the end. And that could catch CAD traders off-guard, as Adam pointed out yesterday.
However, for the time being technical levels are siding with sellers in the near-term as price moves further away from the two key hourly moving averages and towards a test of the 50.0 retracement level @ 1.2928 with the swing region around 1.2900-17 also within sight.
A break below those levels will bring the 200-day MA (blue line) into question.
