Lower oil prices continue to weigh on the CAD
With oil prices falling sharply (price move below $35 and tested 50% retracement of the years range earlier), the CAD has weakened and the USDCAD has moved higher.
Technically, looking at the 4 hour chart above, the price moved back above its 100 day moving average at 1.33315 (see overlay of moving average at the low), after testing the level during yesterday's trade and finding sellers.
The move to the upside today also took the price above recent swing levels between 1.3323 and 1.3339, along with the 50% retracement of the move down from the June 26 swing high to the September 1 low at 1.33542. The price has since dipped back below the 50% retracement level but is trading above and below the level as I type.
With the break to the upside, the buyers are making a play and taken more control. Traders will look for those levels as support now. Stay above, keeps the buyers/bulls more in control. Move below and the buyers will be disappointed on the failed break.
