The price of WTI crude oil futures is back down testing its earlier low for the day at $66.70. The contract is down over 5% on the day ($-3.80). The price is also testing its 61.8% retracement at $66.58. Move below that level would open the door for further selling.
On Friday, price fell below its 200 hour moving average (green line), and stayed below that level. Sellers leaning against the moving averages tilted the bias back to the downside. The omicron concerns over the weekend have helped to push the price further to the downside.
Since the peak at the end of October, the price is currently down around -21.9%. At the recent cycle low from December 2, the price had moved down around 26.8% from its high.
The run lower in crude oil, has helped to support the USDCAD today (CAD selling). Looking at the daily chart, the pair is up testing the swing high going back to one year ago on December 21, 2020 at 1.29558. The high price today just reached 1.2959. In between last year and this year, the price bottom on the June 1 at 1.2006. There was a peak reached on August 20 at 1.2949 and a move down to 1.2287 on October 21 (near the peak in oil on October 25), before the run back to the upside (on crude oil selling).
Needless to say, this area between 1.2949 1.29558 is a key resistance area. There is more of a push above, it could open up the door for much stronger momentum to the upside on the break out.
