- Pops above 1.3000 amid inconclusive end to NAFTA talks on Thursday.
- Friday’s NAFTA talks and macro news in focus for the next direction.
The offered tone around the Canadian dollar picked-up strength last hour, now pushing the USD/CAD pair back beyond the 1.3000 level, in a bid to reach fresh four-day tops at 1.3022.
USD/CAD: Focus on Friday’s US-Canada NAFTA talks
The spot broke its overnight bullish consolidative mode and popped higher in Asia this Friday, as the Canadian dollar came under fresh selling pressure after the US and Canadian negotiators ended talks on the North Atlantic Free Trade Agreement (NAFTA) inconclusively, with the talks likely to extend into the Friday deadline.
The US President Trump told Bloomberg TV: “Canada’s going to make a deal at some point. It may be by Friday or it may be within a period of time. I think we’re close to a deal.”
Meanwhile, the sell-off in the Emerging Market (EM) currencies has boosted the bid tone around the US dollar, as markets seek safety in the greenback amid market unrest and uncertainty. Hence, the renewed uptick in the US dollar versus its main peers also added to the upside in the major.
Also, subdued trading activity seen in oil prices fails to offer any support to the resource-lined Loonie. Looking ahead, all eyes remain on the NAFTA talks due later today in the American morning for fresh direction. The focus also remains on the Canadian RMPI data and US revised consumer sentiment figures for fresh incentives.
USD/CAD Technical Levels
FXStreet’s Analyst Flavio Tosti, offers key technical levels for trading USD/CAD ahead:
Resistance 1: 1.3022 July 25 low
Resistance 2: 1.3048-1.3066 area, August 14 low and July 9 low
Resistance 3: 1.3100 figure
Support 1: 1.2959 August 7 swing low
Support 2: 1.2920 supply level
Support 3: 1.2900 figure
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