USD buying, oil is lower, trade concerns are helping the pair
The USDCAD is trading into a swing resistance areat in the 1.3037-46 area.
That area has a number of swing levels going back to May 29th. The pair moved above the area on June 5th but quickly reversed. Yesterday, the area was broken at the Fed decision time, but also reversed.
Today, the pair is running higher on the back of dollar strength, lower oil and trade/NAFTA concerns. A move above the yellow area will target the June highs at 1.30682.
Canada's Freeland is on the wires saying:
- We decided to continue NAFTA negotiations
- NAFTA negotiators will work hard over the summer
- Says NAFTA and tabs are 2 different issues
- Canada's strategy isn't to escalate tariffs
- But says no specific dates set for further NAFTA talks
- world community United in response to US tariffs
UPDATE. The USDCAD has broken the swing and has taken out the high for the week at 1.3051. The high just extended to 1.3058 with the 1.30682 the next target. Looking at the daily chart the topside trend line is at 1.3080 and above that, the 2018 high at 1.31243.
