Crude oil higher
The USDCAD has been chopping up and down going back to July 21. Most of the price action has been between 1.3330 and 1.3460 (130 pips over a 10 day). The high price last week reached 1.34588. The high price yesterday reached 1.34508 – below that level. Last week's lows from Tuesday and Thursday stalled at the 1.3330 area.
In between the 2 extremes sits the converging 100 and 200 hour moving averages. The 100 hour moving average is currently at 1.33969 while the 200 hour moving averages at 1.33910. As the market consolidates, the moving averages have caught up with the price and the last 4 trading days has seen the price move above and below those moving average levels.
The up and down choppy trading conditions along with the converged and sideways moving averages is indicative of a non-trending market and uncertainty by traders.
Having said that, the move above the moving averages earlier today, and back below more recently, has led to momentum moves in the direction of the break. In the London morning session, the price broke back above those moving averages and moved up to a high of 1.3420. The more recent break to the downside has sent the price to new session lows at 1.3352. Should the momentum continue, the next target would be the lows from last week at 1.3330.
Helping the loonie today is higher oil prices. The price is currently trading at $41.59 up $0.58 or 1.44%. The high price reached $41.61 after trading as low as $40.14 earlier in the session. The 50% retracement of the 2020 trading range comes in $41.71. In June the price traded above that level but not by much. If the price is going to move higher getting and staying above that midpoint level would be eyed.
