USDCAD trades to new session lows

Technical Analysis

Author: Greg Michalowski | usdcad

Crude oil rise, lower USD and technicals hurt pair

The BOC kept rates unchanged and the bias was a bit more dovish, but rising crude oil,  a lower USD and bearish technicals have hurt the pair.

Crude oil rise, lower USD and technicals hurt pair
Looking at the hourly chart, the pair moved lower with the overall USD decline on the Powell prepared text. Then raced higher on the rate statement.  The high for the day moved to a swing area at the 1.3139-445 area (see yellow area and green numbered circles), and stalled. A bid tail was left in its wake on the hourly chart.  When the price fell below the 200 and 100 hour MAs at 1.3092-94, it led to another run lower with the price bottoming at 1.3064.  We currently trade at 1.3077.  

On more weakness, the 1.3059, 1.3049 and 1.30366 are the swing low levels that traders will target. Risk now?  You have to stay below the 100 and 200 hour MAs.  

Crude oil futures today settled that $60.43. That was up $2.60 or 4.5%.

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