100 hour MA and 200 day MA tested. #8.2% and trend line also in the area.
The USDCAD is moving lower on the back of higher oil prices. Comments from Russians Putin saying Russia was ready to freeze or even cut will output, has pushed the price of oil higher. The crude oil futures account trading up a dollar 16 or 2.33% to $51 per barrel.
The fall in the USDCAD has the pair testing a support target at the 100 hour MA at 1.32147. The 200 day MA is not far behind that level at 1.32055. The 38.2% retracement of the move up from the September 29 low also comes in that area at 1.32110 AND a trend line support line cuts across too. Technically, it is a pretty good support level.
The USDCAD fell in trading on Friday after a much stronger than expected Canadian employment report (+67.2 K new jobs). However, there was a snap back rally and the price ended up trading at the highest level since mid-March 2016.
Last week oil prices moved higher (moving back above $50 per barrel for Crude oil futures), but the CAD largely ignored the increase.
Today, the market seems to be paying a bit more attention but traders may still be a little more cautious.
What may open up the trading, will be if the cluster of support between the 1.3205-1.3214 can be broken. If done, there should be further downside momentum. That is the" big IF".
In the meantime, traders - looking to take advantage of the low risk against the cluster of support - should make a break tough. It may just be a low risk trade (we may just rebound a bit before moving lower), with stops on a move below the 200 day MA. Key test.
