Crude oil up over 3% in trading today.
In an earlier post, I commented on how the price of the USDCAD was rising in sympathy with the USD bid. However, there was a caveat. That was that oil prices were up 2%. Typically, the CAD rises as oil prices rise.
The current price of oil has risen more and currently trades at $47.43, up +2.77%. What has happened to the USDCAD?
It has retraced the move higher and tests the lows for the day.
Technically, the price fell back below both the 200 hour MA (green line in the chart above) and 100 hour MA (blue line in the chart). It also fell below the broken trend line. That was enough and we have seen an accelerated fall to the 1.3070-1.3079 area. This area (yellow area in the chart above), has been an area of swing highs and swing lows going back to early October.
