The pair now trades under the 100-hour moving average
Sellers are now looking for a firm hold under the 100-hour MA (red line) @ 1.2943 and that would establish a near-term bearish bias in the pair as we move along the day.
But there are still support levels holding nearby at yesterday's low @ 1.2915 and this week's low @ 1.2900 - along with bids at the figure level.
The pair gained ahead of the US session on remarks that the US has requested OPEC to increase production output by 1 mil bpd, before a Trump tweet on NAFTA sent the pair for a wild ride spiking above 1.3000 and testing the 200-hour MA (blue line) all in a matter of seconds.
Buyers then attempted another break of the 1.3000 handle only to find sellers once again before retreating below that into the close. Then, we had some early news this morning where Canada may be exempt from US tariffs and that was enough to send the pair below the 200-hour MA and test the 100-hour MA.
There isn't a firm break of the latter just yet, with price still hugging the 100-hour MA - but any extension to the downside now will first be met by a test of the 1.2900 level before any further moves to test the 30 and 31 May lows.
The key data risk for the loonie today will be trade balance data during the US session.