Failed in the Asian Pacific session. Oil prices are lower
The USDCAD has moved above the 200 day MA and the ceiling area for the 2nd time today as NY traders enter for the day. Crude oil futures are down 2.61% on the day and that is helping the pair in trading today. There are a lot of headline news as the OPEC meeting gets closer and closer so be aware.
Technically, the price has moved above the 200 day MA at 1.3379 and a resistance area defined by swing highs highs going back to September 14th (between 1.32349 and 1.32471). In fact this is the 2nd break today. Earlier in the Asian session the price broke, but failed.
The move back lower leaned against the 200 hour MA at 1.3160 level. Traders will now be looking for this break to hold above the 200 day MA and the old ceiling area and move higher. We are already back in the yellow as I type but looking for the buyers here to enter and support the pair.
Looking at the daily chart, the next target is the 38.2% of the move down from the Jan high to the May low. That level comes in at 1.33116. A move above that level opens up the upside for additional games.
All eyes on leaning against the support now. Bulls trying to stay control. Can they do it. Will the buyers buy in the support area. Risk is defined and limited. Key test.
