With concern about the Isaac strengthening in the gulf coast, and all the other things that are giving oil it’s bid (mideast tension, QE risk), the price of Oil is up more today (about a $1) and as a result, it is helping the Canadian dollar – albeit modestly.
From a technical basis, the price of the USDCAD broke back below the 200 hour MA (green line in the chart above) at the 0.9897 level in the current hour but after testing the midpoint of last weeks trading range at 0.9894, the price has rebounded a bit. The midpoint is the next level to get through in order to keep the downside sellers in charge.
Risk for the sellers from a technical perspective is against the 100 hour MA currently is at 99.08 (blue line in the chart above). Stay below and the downside can continue. The 0.9881-83, 98.588 and low from last week at 0.9840 are the next downside targets for the pair.
If the price moves above the 100 hour MA at the 0.9908 level, the high for the day is at 0.9923, and the near triple top from last week at 0.9947 are the next obvious targets.
