December 6, 2022

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USDCAD trades to a new session high. Crude oil is down sharply helping to weaken the loonie

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Trades near highs for the day

The USDCAD is trading to a new session high after being mired in a very narrow32 pips trading range for most of the London session. Helping to weaken the CAD (move USDCAD higher) is crude oil which is down around $2.20 or -3%.. The high price of just reached 1.2495.

Trades near highs for the day

More upside momentum would look toward the 100 hour moving average at 1.2503. The price fell below that moving average on Wednesday (FOMC day) when the MA was up at the 1.25686 level (at the time). The low price from Friday bottom that 1.24215. That was right near the swing low from July 14 at 1.24223.

A move above the 100 hour moving average would have traders targeting swing lows near 1.25248 followed by the falling 200 hour moving average of 1.25376. Last week, and going back to July 22), the price tested the 200 hour moving average on a few occasions, but consistently found sellers against the moving average.  

Now with the 200 hour moving average moving lower, the hurdle is easier for the buyers. Moving above would give more of a bullish bias to the technicals after successfully testing the July 14 low on Friday.  

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