Oil up 2.27% on the day
The USDCAD is following oil with WTI futures up 2.27% on the day now. As a result, the price is now dipping below the 100 hour MA a the 1.3064 level.
The next target area is 1.3042 – 51. The 50% retracement of the move up from last week's low comes in at the 1.3051 level. Below that, look for 1.30277. Over the last few weeks, the price has spent most the time above the 1.3042-51 level. Prior to that, most of the trading was below 1.3042-51 area (see blue square). If the price can get and stay below this area, the sellers should be more comfortable. Of course, there always be a wandering eye that looks at oil prices
