USD/CAD Below Support

USD/CAD is trading below the long-term support and just about to touch the 200SMA. The pair broke the support level at 1.3160 and continued to the downside to reach a low of 1.3125. The low comes after the US dollar advanced to a high of 1.36 against its peer and then took a turn South.

Yesterday's speech of Donald Trump influenced the US currency market and the US dollar depreciated against its competitors. Today it seems that the move is likely to continue as there would be no major news that can change the direction of the market.

Current market price is 1.3127 and we are only some 30 points away from the 200SMA. If bears are able to push price below that level we might see selling to accelerate to potential target below 1.30.

On the other hand, the 200SMA might be used by the bulls to bounce off as a strong support level and go back above the support at 1.32.

Chart: USD/CAD D1