The USDCAD has moved higher this week on the back of lower crude oil prices.
That move had a marginal reprieve earlier today with crude oil prices moving positive on the day. However with the fall in stocks and concerns about growth, the price has continued its moved to the downside. Crude oil is currently trading down $0.64 or -1.77% at $35.54.
Looking at the USDCAD, the price action today saw the pair try to move above its 100 day moving average at 1.33282 earlier in the day, but that attempt failed.
The subsequent fall took the price down to test the low from yesterday at 1.32776. Buyers came in against that level. The price also stalled ahead of its 38.2% retracement at 1.32712.
The pair is now trading between that support line and the 100 day moving average above. Traders will be looking for a break in either direction with momentum.
Overall, the buyers remain more in control with the support buying against the low from yesterday and buying against the 38.2% retracement of the recent move higher from the October 20 low. That retracement is the minimum if the sellers are to take more control from the buyers. They could not get below that level. As a result, buyers have the edge with the key 100 day moving average the hurdle above.