The USDCAD is being supported by lower oil prices. The price of WTI crude oil futures are currently down $1.79 or 4.38% to $38.80.
As for the USDCAD, it has moved to new session highs at 1.34108. The move puts the pair within shouting distance of the double tops from last Thursday and Friday at 1.34174. A move above those levels would open up the upside for further gains.
The pair has been consolidating mostly above the 1.3345 level over the last 3 trading days. Today's low reached 1.3351. That was just below the low from yesterday at 1.3353. The price action over the last 2 days has seen moves above and below its 100 hour moving average at 1.33767. However the pair is moving away from that moving average.
Taking a broader look at the daily chart, although the pair has been rising's in September, it is simply correcting the sharp move lower from the March high of 1.46662 the September low of 1.29934. Technically, the pair is approaching a topside trend line at 1.3424. A break above that trend line would target the 100 day moving average at 1.34482.
If the buyers are to take control, they would need to extend back above the falling 100 day moving average (blue line in the chart below) and ultimately the 200 day moving average currently at 1.35252 (green line in the chart below. That would give the buyers more confidence that a move higher is more likely.
For the time being, the hourly chart is giving more bullish clues, but is approaching some key resistance as well.