The USDCAD has experienced a mix of downward and upward price action. Crude oil prices, which can influence the CAD, were higher earlier after Saudi Arabia and Russia met yesterday to discuss supporting oil prices. The price of crude oil reached $69.83 but has since retreated to $67.71, down $0.63 on the day.
Additionally, Canada's producer price data and raw material price data fell short of expectations today, with raw material prices down 5.2% year-on-year and producer prices up only 1.4% year-on-year, compared to a 5% increase last month. Lower pipeline inflation also contributes to the weakening of the CAD, leading to a higher USDCAD.
From a technical perspective, the price is currently testing the 100-hour moving average at 1.37236 and trending upward. The next key resistance area lies between 1.3738 and 1.3752 (see red numbered circles on the chart above), which also includes the rising 200-hour moving average at 1.37493. A break above these levels would strengthen the bullish bias.
On the downside today, the price attempted to break below an upward-sloping trendline but failed to maintain momentum towards the next key support area near 1.3658 – 1.3665. This failed break has helped reinforce the tilt back to the upside in trading today. The sellers had their shot.
