USD/CAD plunges 1 big figure as US calls-off NAFTA withdrawal

The Canadian currency witnessed a sharp 80-pips rally against its American counterpart last minutes, slamming USD/CAD from fresh 14-month tops reached earlier at 1.3648.

The spot ran through fresh sellers, after the latest statement from the White House notified markets that the US President has agreed not to terminate the NAFTA at the current time, which rescued the CAD bulls big time.

Meanwhile, the Loonie pays little heed to lower oil prices, as the latest news come as a big positive for the Canadian economy. Moreover, broad based US dollar weakness also adds to the renewed downside in the major.

Markets will continue to digest the White House statement, as attention shifts towards the US dataflow due later in the NA session.

USD/CAD Technical levels                

Technical resistances for the pair are aligned at 1.3593/1.3600 (5-DMA/ psychological levels), 1.3648 (14-month tops) and finally 1.3676 (classic R2/ Fib R3). On the flip side, the spot finds next support at 1.3500 (zero figure), a break below that level could open the door to 1.3487 (10-DMA) and 1.3420 (20-DMA).