WTI up but CAD falls
The price or WTI crude is up 1.19%. Despite the gain, the CAD has weakened as shorts have gotten squeezed.
Looking at the hourly chart, the rally based yesterday against the lower trendline connecting lows from Monday, Tuesday and Wednesday. The rally after the FOMC statement. So the price move toward channel trend line resistance. After some choppy trading during the London session, the pair started to appreciate further after better US data. The squeeze intensified as the 38.2%, trend line and 100hour MA were all broken on the hourly chart (at the 1.2081 area - see chart below).
The rally has extended to the 50% retracement of the move down from the April 21 high at the 1.21239. The 200 hour moving average (green line in the chart above), comes at 1.2149.
There seems to be some squaring up/sellling near the highs for the day. On the 5 minute chart, the price has a double top (or near a double top - 1.2131 and 1.2130 high). A move below the 1.2100 level may solicit a look toward the 1.2080 area (38.2 and 100 hour MA).
