The pair touches session lows of 1.2866
The pair is now trading below the 200-hour MA (blue line) of 1.2874 and that could be a good enough catalyst for sellers to bring the price below the support level that has been holding the pair up this week at 1.2869.
Commodity currencies are starting to feel the love again after the US took a more lenient approach in the tariffs implementation and the fact that Canada gets an indefinite exemption for the time being will provide some relief for the loonie. And progress on the North Korean front is also helping to feed the feel-good factor too.
The only drag so far has been oil prices which is looking to test $60 once again.
But the week isn’t done and dusted yet, as we still have both US and Canadian jobs report due later in the day. And those data points will have a say in where USD/CAD ends up this week.