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  • USTR Lighthizer says they are running out of time in NAFTA talks with Canada.
  • WTI sticks to daily gains near $72.50.
  • US Dollar Index stays calm near the 94 mark.

After dropping to a fresh session low at 1.2935, the USD/CAD pair gained traction in the last hour as the loonie weakened on latest NAFTA headlines. As of writing, the pair was virtually unchanged on the day at 1.2950.

Earlier today, the broad-based USD weakness and a stronger loonie supported  by rising crude oil prices weighed on the pair. The US Dollar Index, which failed to extend its recovery above the 94 mark, stays under pressure despite the upbeat data releases from the United States. The monthly report published by the Consumer Board showed that the consumer confidence improved to 138.4 in September from 132.1 in August and the Richmond Fed Manufacturing Index advanced to 29 from 24 to surpass the analysts’ estimate. At the moment, the DXY is down 0.17% on the day at 94.10.

On the other hand, the U.S. Trade Representative Robert Lighthizer recently crossed the wires saying that Canada was not making concessions on key NAFTA issues and they were running out of time in talks with Canada. In the meantime, crude oil is struggling to extend its recent rally and trades near $72.50 to make it hard for the commodity-sensitive loonie to stay resilient against the buck.  

Technical levels to consider

The first technical resistance for the pair could be seen at 1.3000 (psychological level) ahead of 1.3040 (50-DMA) and 1.3085 (100-DMA). On the downside, supports are located at 1.2940 (200-DMA), 1.2885 (Sep. 21 low) and 1.2820 (May 31 low).