The 1.3203-10 area is home to swing levels. The low today reached 1.32117. WTI crude trades at lows for the day.
The USDCAD is seeing a bounce off the 1.3203-10 support area. The support area at 1.3203-10 level is home to a number of swing levels going back to June 13 (see red circles). The price did spend time below that area on June 14, and briefly on June 19, but there have been about 7 bounces on other tests. For the USDCAD, the 200 hour MA at 1.3252 and the 100 hour MA at 1.32688 are topside resistance targets for the pair.
The price of WTI crude oil is trading near the lows the day (reached $42.72 so far). That is helping to contribute to the modest rebound in the USDCAD (lower CAD).
Looking at the daily chart of crude oil futures, the $42.20 level was the low on November 14, 2016. Last week on June 21, the price dipped below that level on the way to a low of $42.05, but the break quickly retraced and closed higher at $42.53. On June 22, the low reached $42.26 - ahead of that key swing low level - and bounced. Those levels will be downside targets on further weakness. On a break, the 50% retracement at $40.65 will be eyed.
