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Forex technical analysis: USDCAD reacts to oil

Moving higher on the day.

The price of the WTI crude oil is lower today, with the price at $50.39 , down about $-1.40 or -2.24%. The price has moved below the 100 hour MAat the $50.62 level currently. Stay below is more bearish from a technical perspective.

Looking at the USDCAD, the pair is reacting to the lower oil and moving higher in the NA session (CAD gets weaker). Technically, the price has moved to test the underside of a broken trend line at the 1.3313 level The high price reached 1.3310 and stalled (see chart below). We are currently trading near 1.3295.

So although oil is trading lower and looking more bearish below it's 100 hour MA, the USDCAD is taking a breather after failing to get back above the broken trend line.

Looking at the 5 minute chart, the pair has retraced 38.2% of the move higher at 1.3288. The Asian session high stalled at 1.1384. Stay above that area, keeps the bulls in control for the day. Move below and the run up loses some of the importance. If we go higher, a move above the 1.3313 level should be more supportive to the pair. .

At 10 am the Ivey PMI will be released with the expectation of 60.0 vs 59.7 last month.

Watching oil.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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