The USDCAD rebounded higher in the Asian/early European session, and in the processes all the pair move up to test a floor from Monday and Tuesday at 1.2730. The high price reached 1.27291, and found sellers. The floor became the ceiling.
The subsequent step lower is now seeing the pair move below its 100 hour moving average 1.26674 and 38.2% retracement at 1.26598. Stay below each, will have traders looking toward the 200 day moving average at 1.26217.
ON Monday, the price moved above the 200 day moving average for the first time since July 2020 (1 year ago). I would expect buyers against that moving average level on a test today (going forward). It is also near the 50% of the move up from last week's low at 1.26144 increasing the areas importance from a technical perspective. PS a break below, however, would be bearish for the pair.
The price of WTI crude oil futures are seeing a rebound away from its 100 day MA today. The price did fall below that 100 day moving average on both Monday and Tuesday (the moving averages is at $66.32), but could not sustain momentum. Buyers today have entered and pushed the price up to around $68.60 currently.
Higher oil prices tends to help the CAD (higher/lower USDCAD).