The Canadian Dollar - also known as the Loonie - declined again on Monday as oil eased and USDCAD was trading 0.45% stronger in the morning, with the price rising steeply to the psychological level of 1.30.
Traders bought the pair, despite the recent positive development in the NAFTA case and the Canadian Dollar dropped broadly. Oil was also 1% lower on Monday, which undermined the Loonie as well.
The pair is now surging toward the stronger bearish trend line and the psychological level of 1.30. If the greenback strengthens beyond this, the current bearish bias could end, and the next target could be at 1.3050 for bulls.
Bids might be located at 1.2950 and if the pair declines below, this could mean that key support may find itself slightly below the 1.29 mark once more. The outlook seems neutral for now and most investors will probably wait for either a breakout above 1.30 or a breakdown below 1.2950.
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