Dismal Canadian building permits data and NAFTA setback weighed heavily on the Canadian Dollar .
Reuters reports mentioning that Canadian authorities were increasingly convinced that President Trump will announce US withdrawal from NAFTA sent the CAD tumbling.
Focus now on the Bank of Canada meeting next week. Markets have firm expectations for a BOC interest rate hike move next Wednesday.
OIS is pricing an 87% chance of a hike for next Wednesday’s policy decision.
Technically, the pair has broken channel top at 0.9855, raising scope for further upside.
200-DMA offers stiff resistance at 0.9910, breakout will confirm further upside.
Support levels - 0.9855 (channel top), 0.9812 ( 20-DMA ), 0.9794 (5-DMA)
Resistance levels - 0.9910 ( 200-DMA ), 1.00, 1.0052 (61.8% Fib retracement of 1.0345 to 0.9579 fall)
Watch out for break above 200-DMA to go long, target 1.00/ 1.0052