Choppy trading session as market consolidates
The USMCA news helped to push the USDCAD lower yesterday on the rumours. Today, the price action is up and down mixed.
Technically, the pair sits above its 100 day MA at 1.32293 (and has remained above over the last 3 hourly bars. Stay above is a tilt in the bullish direction. Although above, the upside is limited. Nevertheless if the buyers can keep it above, the 200 hour MA at 1.32542 will be the upside target.
Should the 100 day MA be broken, a move toward the lower 100 hour MA at 1.32176 would be eyed.
In yesterday's trading the price traded above the 200 hour MA above, but failed and later in the day below the 100 hour MA, only to fail as well. For all of today, the price has not ventured outside those MA extremes. The market is deciding and onshore of which way to break.
As Adam reports, the price of crude oil has moved back above the $59 level and currently trades at $59.19. That should be bullish for the loonie (bears for the USDCAD).
Also in the back of traders mind is the weaker than expected employment report from Friday that push the pair sharply to the upside (lower CAD/higher USDCAD). Yesterday, the price corrected between the 38.2% – 50% of the move off the Thursday low and stalled.
So, there is a bit of a battle between the bulls and bears. When this happens, the technicals will show the way. Watch the levels and look for momentum on a break in either direction.
