Sellers push lower
The USDCAD is dipping to a new low for the day, and in the process, has taken out the swing low from March 18, 2021. THe pair is now trading to the lowest level going back to February 2018.
Drilling to the five minute chart, the corrective move in the New York session did find sellers against the 100 and 200 bar moving averages (earlier the sellers leaned against that level as well). That give the sellers the go-ahead to push to new lows.
In addition to the technical bearishness in the pair (see earlier post) and the Bank of Canada taper, higher oil prices are giving the loonie a tail wind (lower USDCAD).
Looking at the hourly chart below, the price of crude oil has pushed up through the high from March 16 and look toward the swing high from March 20 at $64.38.
