Oil prices down -2.73% at $39.26 (off low of $37.61)
Oil prices have recovered off the the lows at $37.61 (up to $39.26) and that has helped send the USDCAD back lower toward support against the 100 hour MA. That level comes in at 1.2840. The low just reached 1.2840. There is an upward sloping trend line at the 1.2836 level as well which has provided support on the test....
The price is bouncing off the level.
Clearly, it is oil trade for this currency pair. The Doha failure is being offset by Kuwait oil workers strike which is taking supply away and helping the recovery in oil from a fundamental perspective.
Technically, the peak earlier in the day stalled near the 50% at 1.29806 (the high reached 1.29888). The price fell below the 200 hour MA (green line in the chart above at 1.29374 currently). The move has now stalled against the 100 hour MA. Is that enough technically? We really do not know. You need to make a correct judgement on oil at this level too. But what we do know, is traders can define and limit risk against the level and they have done that on the first look at least.
