Canadian dollar was sharply higher in Asia on Thursday, supported by comments from US President Trump who said that termination of NAFTA treaty is not at the agenda at this stage of negotiations between the members of the treaty. The news boosted Loonie which was under increased pressure from lumber news earlier this week. USDCAD fell from fresh over one-year high at 1.3645 and spiked to session low at 1.3527. Fresh weakness may extend, as today’s fall could be seen as rejection on probe above weekly cloud top (1.3573) and bearish signals building on reversal of daily RSI and slow stochastic from the overbought territory. Focus will be on today’s close, which would give another negative signal if in red, with confirmation of reversal seen on extension below 1.3483/70 (Fibo 38.2% of 1.3221/1.3645/rising daily 10SMA). Conversely, return and close above weekly cloud would be seen as bullish signal.
Res: 1.3573, 1.3596, 1.3645, 1.3700
Sup: 1.3527, 1.3483, 1.3470, 1.3412
