USD/CAD rises to a high of 1.3205 on the day
There is some swing region resistance on the daily chart around the figure level so look out for that but the pair today will be a tricky one as we have the Bank of Canada meeting along with the resumption of NAFTA talks to come later on in the day as well. Giles has posted up a good preview on those items here.
It's not just the loonie that is faltering against the greenback at the moment. EUR/USD is down to a low of 1.1543 and GBP/USD also touches a low of 1.2820 on the day as the dollar pops higher alongside the yen and the swissie.
As for USD/CAD, technicals can only guide you so far today. There is minor near-term resistance from yesterday's high @ 1.3208 but it's more of a daily resistance around 1.3200 that will matter.
Apart from that, there is further resistance seen at the July highs at 1.3290. But today, it's going to be all about headlines for the loonie.
The Bank of Canada decision and NAFTA will be the two key items to watch. The former isn't expected to raise rates here but it's all about the language and hints ahead of the October meeting. Meanwhile, the latter appears to be getting more and more bearish for the loonie but you never know when it comes to politics.
If you're taking a bias on either side of the trade, make sure you use technical levels to define and limit your risk though. Headline risks will be wild for the loonie today, so be wary of that.
