USDCAD falls toward the swing area at 1.35185 to 1.35235.
The USDCAD is making a new session low and looks toward a swing area defined by lows and high going back to July 6 (see red numbered circles). That area comes between 1.35185 and 1.35235. The low price just reached 1.35252.
A move below that level should be more bearish. However the 200 day moving average at 1.35096 is also being approached. Last week and the week before, sellers took the price below that 200 day moving average and tried to push lower. However, the breaks below the MA, led more to up and down consolidation around the moving average level and each found that sellers gave up, and buyers took back control -pushing the prices back higher. (see red shaded area).
Helping the sellers has been rising oil prices. The September contract traded as low as $39.97. It is currently trading near session highs at $40.88 currently. The high price reached $40.95.
