The USDCAD is retesting the high price from last week at 1.35447. Between that high, the price tumbled down to 1.3385 reached just yesterday. However, after finding support near the low of a swing area between 1.33867 and 1.3400, the pair started a run to the upside helped by reversing oil prices and a stronger USD.
The technicals also played a role with the price moving back above the 200 hour MA (green line), the 100 hour MA (blue line), a swing area between 1.3494 and 1.3510 . Today the low in the Asian session based at a swing level at 1.3569 before restarting the move to the highs. That level will now be a close risk/bias defining level. Stay above is more bullish in the short term. Move below and we could see some rotation back to the downside.
For now however, the buyers are in control but need to extend above the highs to keep the ball rolling. Conversely, risk focus sellers could lean against the high hoping for a rotation back to the downside and retest of the 1.3569 level over time.
Crude oil prices today are trading down around $0.72 at $76.62. The low price reached $75.29. The high was at $77.86.
PS. The pair is now breaking to the upside training to a new high of 1.3658. The 61.8% retracement of the move down from the October high comes in at 1.36898 and would be the next upside target (see daily chart below).
