December 6, 2022

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USDCAD moves back down to swing area

1 min read

Swing area in the 1.2040 to 1.2046

The USDCAD is trading near the lows for the day and in the process is testing a swing area in the 1.20407 to 1.20461 area.  Yesterday and on Friday, the pair stalled near that area before moving to the downside and trading to the lowest level since May 2015. 

Swing area in the 1.2040 to 1.2046

The rebound higher moved initially up to the 100/200 hour MA before breaking above those moving averages today. The high price extended to another swing area between 1.20898 and 1.20950. That area stalled the rise and sellers have been pushing the price down over the last 5-6 hours into the aforementioned lower swing area. 

Crude oil prices are up $1.00 or .48% at $68.72. That is just below the high of $68.74. The low price today reached $67.78 before rebounding higher.  Higher oil prices tend to support the CAD (lower USDCAD) and has likely contributed to some of the downward momentum seen in the last few hours.  

A break below the 1.20407 would have traders looking toward the 1.20269 to 1.20296 area.  

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