USDCAD tumbles in trading today. Higher oil helps to support the CAD.

We know

The USDCAD is moving sharply to the downside in trading today. In the process, the price has moved below its 100-hour moving average at 1.3208, and its 200-hour moving average at 1.31917. Moving below those levels tilts the bias back to the downside. BTW, there was little in the way of resistance on the breaks of those moving average levels in trading here today. Sellers were strong. It would now take a move above each of those levels to tilt the bias back to the upside.

On the downside, the price is currently testing a rising trend line. Admittedly since the July 14 low, the high lows have been higher. More bullish.

Moving below the trendline and the low price from Thursday at 1.3157, would be a change in that pattern. The low price from last week (on Tuesday) reached 1.31458. Move below that level – and the low of a swing area at 1.3131 – and a rotation toward the low price from July cannot be ruled out.

This article was written by Greg Michalowski at Source