Survives the NAFTA headlines.
The loonie was pressured earlier in the day. Reports from the NAFTA discussions were that both Canada and Mexico could not come to terms with the US in the latest round of trade talks. The USDCAD moved higher. A stronger bias toward the USD also helped the pair move higher.
That rally, took the USDCAD toward the highs from October 6th at 1.2597. The high today stalled at 1.2590 - 7 pips short of that high and also below the natural 1.2600 level. Seller leaned against the old high and the price started a rotation lower.
What now?
The fall took the price toward the close from yesterday at 1.25178, the 200 hour MA at 1.25148 and the 50% retracement of the range since October 6th at the same 1.2548 area. Three technical levels converged and the fall stalled.
Into the new day if that area at 1.2514 can hold, buyers remain in control.
However if there is a break, below look for the buyers to turn to sellers with a move below the 100 hour MA below at 1.2495 to attract even more selling.
