USDCAD pair is torn between lower oil and stronger USD flows
The USDCAD traders are torn between lower oil prices and a stronger USD flow from the fundamental news today.
The price of crude oil is currently trading down around -$1.80 or 2.54% at $68.41. That is helping to put a limit on the upside for the USDCAD pair in a day that is seeing dollar buying (albeit in an up and down fashion for a number of the currency pairs).
Looking at the hourly chart above, although the upside is limited, the USDCAD price has been able to stay mostly above its 200 hour MA today currently at 1.25235 (see green line in the chart above). Bullish.
That level is also near a swing area around the 1.2525 (see red line). Stay above that MA and swing level gives buyers/bulls in the pair happy. Move below, and that comfort for the bulls starts to fade.
On the topside, the 38.2% of the move down from the July 19 high comes in at 1.25686. Above that is the 200 day MA at 1.25895. That daily MA has also been a ceiling for the pair going back to the break back below on July 21.