BOC not as dovish. Oil prices discounted drawdown of inventories
The USDCAD has been whipping around as the BOC statement was less dovish than expected. A bigger drawdown of crude oil inventories seemed to be priced in. The price of crude oil has fallen from a high of $49.57 to a lows of $48.63. The price has since rebounded back to $48.91.
The price of the USDCAD has fallen from 1.3122 to a low of 1.3051. The move back higher took the price to 1.3110 area where seller reemerged against the 100 and 200 bar MA on the 5 minute chart, the price has moved back lower from there.
Looking at the hourly chart, the pair today moved below the 100 hour MA and although the price traded above and below that MA prior to the statement, there have been no hourly closes above the MA line (it is at 1.31228 currently - blue line in the chart below). The 200 hour mA (green line remains a target at 1.3031).
The 1.3084-85 is a level to eye. The low from earlier today came to 1.3085. The low from yesterday was as the same level, and a swing low from May 20, bottomed at 1.3084 We are currently trading back below that level.