USD/CAD moved below the 100-hour moving average earlier

USD/CAD H1 25-01-19

Sellers managed to break the near-term bullish bias earlier today as the loonie is holding up well on the day benefiting from a higher move in oil prices. Oil is up by more than 1% on the day near the highs now, with WTI crude sitting at $53.84 and that is keeping the loonie underpinned ahead of European trading.

In turn, a weaker dollar isn't helping USD/CAD buyers and we saw price move below the 100-hour MA (red line) in Asian trading earlier. Support is seen around 1.3309-19 now with further support seen near the 1.3300 handle as well as the 200-hour MA (blue line) @ 1.3298.

USD/CAD D1 25-01-19

Looking at the bigger picture, the rebound in USD/CAD since the start of the month - after bouncing off the 100-day MA (red line) - appears to be running into resistance from the 38.2 retracement level @ 1.3365.

The Venezuela political situation is an outlier at the moment that could keep oil underpinned in the near-term and in that lieu it also give the loonie a bit of a boost. Regardless, it's hard to ignore the technical picture as well and a break back below 1.3300 will help to reinvigorate sellers to push price further back down.

The July high @ 1.3290 will be a key level to watch out for in terms of a daily support in any further downside move so keep an eye out for that later today.