The USDCAD moved to a new session low and in the process, sniffed the rising 100 hour MA at 1.33759. The low price got with 7 pips of the MA level at 1.3382 and bounced. The price is trading at 1.33972.
The price of the USDCAD moved sharply higher on Friday and Monday, helped by tumbling oil prices. Yesterday oil fell to a low near the end of 2021 level at $75.30 and found dip buyers.
The catalyst were reports that the Saudi’ and OPEC were mulling a production code a 500K at the December meeting. That was later denied by Saudi officials, and the price of oil shot back to the upside. That led to a move back lower and the USDCAD. Today that decline has continued.
Crude oil prices are also higher trading at $81.55 currently. The price settle at $79.73 yesterday.
It would take a move below the 100 hour MA to increase the bearish bias for the pair going forward. Watch 1.34078 as a potential topside resistance target and bias defining area on more upside momentum.