Move higher in early trading fails. Higher oil helping the loonie
The USDCAD moved above resistance from recent highs in early Asian trading, but after extending to 1.4172, the price rotated back lower. The run to the downside has been helped by rising oil prices today. The price of WTI crude oil futures are trading up $2.15 were near 9%. at $26.14.
The USDCAD fall took the price below a swing area at 1.413-198. That level held in the New York afternoon yesterday before moving back higher. The last 5 or so hours has seen the price stay mostly below its 100 hour moving average at 1.40824. We are currently trading to new session lows and testing the 38.2% retracement of the move up from the April 30 low at 1.40487. More downside momentum would next target the 200 hour moving average 1.40250. Recall that yesterday the price bounced off of that moving average (see green line in the chart above)
Sellers started to take control on the failed break of the highs for the week in the early Asian session. The move down through the technical levels (with the last being the sellers vs the 100 hour MA), keep the bias to the downside and looking toward targets. Yes there is a work to be done at the 38.2% retracement and then the key 200 hour moving average. Risk for shorts is the 100 hour moving average now 1.40824.
