USD/CAD eyes 1.3000 as loonie remains under pressure
- CAD weakest among majors during US session on trade concerns.
- USD/CAD consolidates at multi-month highs.
- Crude oil gains more than 2% but loonie remains under pressure.
USD/CAD rose further following US President Trump tweet about NAFTA and printed a fresh high at 1.2987, level last seen back in July 2017. During the last hours, the pair remained near the top with eyes on 1.3000, moving between 1.2965 and 1.2985.
Trump reaffirmed earlier today tariffs on steel and aluminum. He conditioned its removal to a new and fair NAFTA agreement. He also said that Canada must treat US farmers much better. At the World Trade Organization, EU, Mexico and Canada (among other countries) expressed very strong concerns on US trade plans.
The selling bias in the Loonie continued during the US session. Not even the 2.40% rally in crude oil prices helped remove the pressure. Also, the greenback pulled back against AUD, NZD and also European currencies, but held to gains versus the loonie.
USD/CAD levels
A daily close around current levels would signal more gains ahead as it represents a consolidation clearly above the 1.2900/20 area that capped the upside several times during the second half of last year. The pair was trading near the 1.3000 region that is the next resistance followed by 1.3030 and 1.3075. On the downside, supports levels are seen at 1.2915/20 (Oct, Nov and Dec lows),1.2865 and 1.2805.