USDCAD moves higher as lower oil weighs on the loonie

Technical Analysis

Author: Greg Michalowski | usdcad

Price could not get through recent lows. Sellers turn to buyers

The price of oil is getting hit as the OPEC+ deal is built on shaky grounds.  The low reached $22.57. The price is currently trading at $23.12 that's down $-1.96 or -7.87%.

The fall in oil has the loonie losing ground as well on the last run lower.  

Price could not get through recent lows. Sellers turn to buyers
Technically, the price also failed to get - and stay below - the swing lows seen from March 27 and April 7. Those levels came in at 1.3920 and 1.39437 respectively. The low price for the day reach 1.39307 before basing and moving back higher.

We are currently trading at 1.4022. On the topside and next major targets come in against the falling 100 hour moving average at 1.40637. That is also where a downward sloping trendline cuts across.  Earlier today the high price stalled against that 100 hour moving average and rotated to the downside (see blue line in the chart above). It will take a move back above the 100 hour moving average and trend line to solicit more buying.

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