Approaches key target resistance
The USDCAD is being supported by weaker oil but the action has been up and down. The last cue seems to be off that weaker oil which has WTI crude futures down 3.74% in trading.
Technically, the pair up testing the next key resistance targets at the 200 hour MA ( green line in the chart above) and the 100 hour moving average (blue line in the chart above). Those levels come in at 1.31098 and 1.3120 respectively. Also in the area is a series of swing lows that held support for a number of days until the break lower in yesterday's trade.
Will the old support become resistance at 1.3109 area?
Risk can be define risk be limited so there may be some profit taking despite the tumble in oil. However, I get the feeling that eyes will be on the oil prices and if they continue to move lower, that technical resistance will give way, but then again if oil bounces or stabilizes, it will come at the right time for the USDCAD sellers. Key level folks.
