USDCAD tests last week's low and finds some buyers
Risks is defined and limited at the the 1.31504 level.
The USDCAD reached the lowest level going back to March 1 last week when the price extended down to a low of 1.31504. The move higher was helped by rising oil prices on the back of tensions in the middle east.
The price action on Friday was corrective (higher) but could not reach the swing low from June 10 at 1.3238. Yesterday, the high was lower. Today, there are lower lows and lower highs as well.
However, the low just reached to 1.31519. That was not quite to the low from last week at 1.31504, but close enough for a double bottom.. Buyers are leaning against the low as risk is defined and limited. We currently trade back up at 1.3170. A trend line above (connecting highs from Friday and yesterday) cuts across at 1.3194 currently (and moving lower). A move above that level, and the falling 100 hour moving average of 1.3211 currently, will be more bullish signals from a technical perspective.
The price of crude oil near the start of the North American session was trading near highs at $58.38. Looking at the daily chart below, the 50% midpoint comes in at $50.60 and the 100 day moving average comes in at $58.63. Although the high today did not touch those, levels, the importance of each may have helped contribute to some selling on the "test". At the high, the price was up about $.64 on the day. The price has since moved back down helping to weaken the CAD in the process. The price s currently trading down $.17 at $57.73.