USDCAD rips back higher. Lack of follow through selling and lower oil weakens CAD

Technical Analysis

Author: Greg Michalowski | usdcad

Crude oil is down -2.12% on the day

The price of the USDCAD fell on the back of strong retail sales. The price moved from 1.3395 to a low of 1.33535.  

Crude oil is down -2.12% on the day
However, the fall stalled, the price started to retrace higher.  The weekly energy inventory did not help as an inventory build much greater than expectations has sent crude oil prices lower (down over 2%).  That has weakened the CAD (higher USDCAD).

Overll, the pair is within a few pips of reaching the high for the day at 13416. It is also higher o the day. So much for that better data?

What now?

Taking a look at the hourly chart, some traders may look to lean against the earlier high for the day and the 38.2% of the move down this week. The 38.2% comes in at 1.34144. The earlier high comes in at 1.3416.  If the price can stall against those levels, there may be a move back lower.  If not, get out.  The moves in the USDCAD have had it's share of runs higher and lower and higher and lower again.  

The 100 hour MA at 1.3433 would be a target on more upside momentum...(blue line in the chart below).

USDCAD races back higher as crude tumbles

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