USD/CAD Daily Price Forecast – USD/CAD Rebounds after Hitting Strong Support at 1.30 Handle

The USD/CAD pair managed to rebound around 25-30 pips from Asian session lows, albeit seemed struggling to gain any strong follow-through. The pair stalled Friday’s retracement slide from one-week tops and found some decent support near the key 1.3000 psychological mark. With investors looking past the Fed Chair Jerome Powell’s perceived dovish comments at the closely watched Jackson Hole symposium, a modest US Dollar rebound was seen as one of the key factors lending some support to the major. Adding to this, a negative tone around oil markets, with WTI crude oil holding weaker around mid-$68.00s, further weighed on the commodity-linked currency – Loonie and remained supportive of the pair’s steady climb from daily lows. As of writing this article, the USDCAD pair is trading at $1.3059 up 0.23% on the day.

NAFTA Talks Likely To See No-Progress in Near Future in Canada

Meanwhile NAFTA talks are seeing progress between US & Mexico, The peso was lifted by news that U.S. and Mexican trade negotiators were coming close to squaring away bilateral differences on the North American Free Trade Agreement (NAFTA) with talks set to resume later today. On the other hand Canadian Foreign Minister Chrystia Freeland said on Friday that “Mexico and the United States need to resolve complicated bilateral issues before modernization of the North American Free Trade Agreement (NAFTA) can move forward “ and Canadian Prime minister Justin Trudeau cited that “Canada will sign a good deal, not just any deal” indicating that White house’s strategy to use significant gains it achieves with Mexico to force Canada to agree on a new NAFTA on U.S. terms is going to be useless.

The uptick move in the pair lacks any strong follow-through buying interest and remains capped below an important pivotal point, around mid-1.3000’s, amid absent fundamental catalyst, in terms of any major market moving economic releases. NAFTA talks will continue to remain in investors focus this week as well. When looking at technical perspective, Momentum back above the mentioned immediate hurdle could get extended towards the 1.3075-80 supply zones but any subsequent up-move might continue to confront stiff resistance near the 1.3100 handle. On the flip side, the 1.3000 round figure mark remains a key support to defend, which if broken is likely to accelerate the slide back towards an important horizontal support near the 1.2965-60 region.