USD/CAD looks to revisit 1.30 as oil prices rebound

Technical Analysis

Author: Justin Low | usdcad

USD/CAD touches a low of 1.3013 on the session

The loonie is one of the early movers on the day as oil prices rebound in the wake of improving risk sentiment across markets. That has helped the currency lead the way in early European trading with USD/CAD now aiming towards a test of the 1.3000 handle.

Bids at the figure level and the 100-hour MA (red line) @ 1.2994 will be key for buyers to defend the near-term bullish bias. A break below the 100-hour MA will mean that price bias turns neutral as price navigates between the two key hourly moving averages.

Despite establishing a more bullish bias in the near-term since Wednesday, buyers have once again found it difficult to break above the 100-day MA (red line). That remains the key resistance level for the pair at the moment.

At this point, it would need a real breakdown in oil prices for buyers to sustain a break higher beyond that level. Otherwise, the bias remains to sell when it nears the key resistance level there.
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