CAD not impressed with the oil surge, but will it?
The USDCAD is trading at a new session low and in the process is back below the 100 hour MA at 1.3300. The price is currently trading at 1.3278. The new session low just reached 1.3277.
The price of the USDCAD has been in a range of 1.32525 to 1.33807 with most of the activity below 1.33455. Over that time period the price of crude oil has moved up over 13%. Typically, the CAD has some reaction to the price of oil. Not this time. In fact, the CAD is trading near the highest level since June 2017 and just above a trend line on the daily chart at 1.32685 (see chart below).
Nevertheless, the fall below the 100 hour MA on the hourly chart above is more bearish for the pair (bullish for CAD). Stay below to keep the sellers in charge.
The 200 hour MA is not far away at 1.32709. The price has not moved below that MA since June 14th. A move below will look toward last week's lows at 1.3252. Below that should open the door for even more downside.
PS Yesterday, Canada said they were preparing steel quotas and tariffs on China and other nations. The general thinking is that China (and other countries) have been funneling steel through Canada, taking advantage of US/Canada trading agreements (and bypassing trading directly with the US). Canada seems to be acting on that issue which is a step in the right direction for better US/Canada relations for a potential new NAFTA agreement.