USDCAD trades to a new session high. Crude oil is down sharply helping to weaken the loonie

Technical Analysis

Author: Greg Michalowski | usdcad

Trades near highs for the day

The USDCAD is trading to a new session high after being mired in a very narrow 32 pips trading range for most of the London session (the average over the last 22 days has been around 100 pips). Helping to weaken the CAD (move USDCAD higher) is crude oil which is down around $2.20 or -3%.. The high price of just reached 1.2495.

Trades near highs for the day
More upside momentum now would look toward the 100 hour moving average at 1.2503. The price fell below that moving average on Wednesday (FOMC day) when the MA was up at the 1.25686 level (at the time). The low price from Friday bottomed at 1.24215. That was right near the swing low from July 14 at 1.24223 (double bottom - see green numbered circles in the chart above).  .

A move back above the 100 hour moving average now would strengthen the bullish bias and have traders targeting swing lows near 1.25248 followed by the falling 200 hour moving average (green line in the chart above) of 1.25376. Last week, and going back to July 22, the price tested the 200 hour moving average on a few occasions, but consistently found sellers against the moving average.  

Now with the 200 hour moving average moving lower, the hurdle is easier for the buyers. Moving above nevertheless would give a more of a bullish bias to the technicals.
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