USDCAD moves higher on lower oil

The price of the USDCAD has seen a boost higher after the WSJ reported that OPEC was mulling a 500K increase in production at their December meeting. The price of crude oil tumbled to a intraday low at $75.74 before a modest rebound. The price is at $76.18 currently.

The closing price for WTI crude oil on December 31, 2021 was at $75.35. The move lower today nearly completed the "up and down lap" for the year to that level. The high for the year reached $129.42 back in March. The price is down -39% from that high.

The average gas price in the US according to AAA is $3.66. That is down from $5.01 (-27%). The price a year ago was at $3.41.

For the USDCAD, the price has seen a price move above the 38.2% retracement of the move down from the November high (at 1.380742) the low price reached on November 15 (at 1.3225). That 38.2% retracement level comes in at 1.34476 and represents close support for intraday traders. Stay above is more bullish from a technical perspective.

On the downside, if the 1.34476 level is broken, longer-term traders will look toward the 1.3407 area as a next key support target. The level represents a number different swing lows and highs going back to November 8 and 9th (see red numbered circles on the chart above).The high price from Friday stalled at that level . Today, after breaking above, traders formed a floor near that level before wandering higher in the European session.

On the topside, increased upside momentum would have traders looking toward a swing area between 1.3494 and 1.3510. The 50% retracement of the move down from the November high comes in at 1.35163 (see hourly chart above).