USDCAD moves lower as OPEC+ awaited

Crude oil is higher

The price of crude oil is higher but off the highs for the day. The current price is trading at $59.92 which is up 0.76% or 1.23%. The high for the day reached $60.84. The low was at $58.97. See the latest from Adam’s post HERE
Crude oil is higher

The CAD can be influenced by the price of oil. The pair has move lower ahead of the OPEC+ decision (higher CAD – oil prices are higher).  The price is still higher on the day but off the highest levels as well (trades around mid range for the day). 

Technically, the price highs for the day stalled against a topside trendline on two separate occasions. The last test also stalled against its 100 hour moving average at 1.25948 (blue line).  Stay below kept the sellers in play (despite the higher move today).  The price has since moved back below its 200 hour moving average as well at 1.25802. 

If the price can remain below the trendline and the 100 hour MA the sellers are still in play. A move above would weaken that argument from a technical perspective.  

On the downside, the low for the week yesterday stalled against a swing area and 38.2% retracement between 1.25387 and 1.25474.  That floor has done a good job of holding support over the last eight trading days (with one push below on March 23 which failed quickly).   If the sellers are to take more control, getting below that swing area would also be key. 

For now, the price is higher on the day, but there is some cause for pause against topside resistance.  The OPEC+ news and oil price should have a play in how the pair breaks.  

Invest in yourself. See our forex education hub. Source

Leave a Reply

Your email address will not be published. Required fields are marked *