Pair runs further away from the old floor for the week at 1.27677
The USDCAD fell below the floor for the week at 1.27677, but initially stalled ahead of the April 2018 low target price at 1.2527. The subsequent bounce, however, did find resistance against the old floor at 1.27677, and the price has rotated back to the downside and in the process has taken out the April 2018 low price of 1.27251 (see earlier post).
The low has extended to 1.2706. A move below the 1.2700 level would be the next natural target to get to and through.
Trade is looking for close risk would high the 1.2725 to 1.2734 area (the earlier low from today). Stay below keeps the sellers firmly in control. More conservative risk would be up at the 1.27677 old floor area. Moving back above that level would give shorts some cause for pause on the failed break.
Helping to strengthen the CAD is the run higher in oil. Brent crude oil moved back above the $50 level and WTI crude oil futures are also higher by around $2 or 4.37% to $47.51. The rise has squeezed sellers who sold after the surprise 15M build in US crude oil inventories yesterday. Gasoline inventories also increased more than 2 times the expected gain.
