Sellers are making a play in early North American trading in the USDCAD as the price has broken below a floor area between 1.34921 and 1.35039. Getting back above that area is now needed to tilt the buys back to the upside. Until then, the sellers are in control in the short-term/medium-term at least.
On the downside, the 38.2% retracement of the move-up from the July 13 low comes in at 1.3464. The 200 day moving average is also near that level increasing its importance for both buyers and sellers. Break below and it opens a door for further selling momentum.
Crude oil prices are helping to strengthen the CAD (USDCAD lower). The high price extended to $91.18 today with the current price trading near $90.86.
The price of crude oil has risen for 3 consecutive weeks, and in the process moved above its 100 week moving average at $85.98 (blue line in the chart below). The next key target comes near $93.66. Also near that level are swing highs going back to the week of October 10 and November 7, 2022. Key target today and going forward in crude oil.
This article was written by Greg Michalowski at www.forexlive.com. Source