Higher high over the last three days but may be running out of steam
The USDCAD has been respecting a lower trend line over the last few weeks on the hourly chart, and also a topside trend line over the last few trading days. Today, the price moved above that higher trend line, and should have continued the run higher. However, momentum stalled and buyers shifted to selling in the last hour or so.
That move lower has taken the price below the high from yesterday at 1.3506 and the high from Tuesday at 1.34966.
The move higher this month has been helped by falling oil prices. Today, the price of oil tested the 61.8% retracement of the the move up from the 2016 low at $45.57 (low reached $45.67 - see post here). If oil is to rebound, the price of the USDCAD may see some retracement as well. Technically, if the pair can stay below the recent highs (and that trend line above), that move should see a retest of the lower trend line and the 100 hour MA (blue line - currently at 1.34252 and moving higher).
IF tested and broken, look for more downside momentum.
For now, watch 1.3506 for close resistance. Stay below and we should see some further corrective momentum to the downside.
