200 hour MA at 1.3097 level
The USDCAD is moving lower and tests the 200 hour MA at the 1.3097 level. The price moved below the 200 hour MA on Friday on two separate occasions. Each one failed. This is a key test. As the pair is also in the vicinity of number swing lows from last week's trading (see chart below).
WTI Crude is higher on the day after printing new low levels earlier in the day. The rebound is helping to pressure the USDCAD.
A move below the 200 hour MA for the USDCAD - and staying below - will next target the 1.30778 level and then the lows from Friday at the 1.3047 level. The 50% of the move up from the July 29 low comes in at 1.3036.
USDCAD has been largely influenced by weaker oil. If oil can show signs of bottoming, the CAD should benefit. Technically, there are some key levels to lean against as well on a break (to provide a nice ceiling and risk defining area - see red numbered circles). As I type, the USDCAD is moving below the 200 hour MA line. It is up to the market to stay below the MA now and pressure those next targets on the downside....
