USDCAD plunges to new session low

USDCAD is back in the bullish and bearish trading range

The USDCAD dipped to a new session low in the current hourly bar. In the process, the pair:

  • Back in the trading range that confined the range between 1.2935 and 1.3083. Earlier today, the price broke below the upper end of this range and was able to stay below this level and push lower
  • Has broken below its 100-hour moving average 1.30365
  • Currently testing its 200-hour moving average at 1.30189.

Being below the 200 hourly moving average and staying below this level would increase the bearish bias and cause traders to look to the lower extremes in the swing high and low zone (see the red box in the chart below). above). Recalling the start of this week and last week, price stalled at 1.2935 on 3 occasions (see red circles numbered for, 5 and 6) before this watch level near the 1.2965 level.

Conversely, if the price is able to break back above the 100 hourly moving average, keep an eye on the 1.3051 – 1.30548 area as resistance.

The rebound in crude oil prices helped the CAD rise. The futures are currently trading at $98.24, up $2.50 on the day.

Close. Biden is meeting with Saudi officials today seeking an increase in the country’s production. For the week, as seen in volatile trading. A week ago, the price closed at $104.78. The high price reached $105.02 on Monday and a low of $90.58 on Thursday. The price near $98 is near the middle of this trading range (actually just above it).

The upward movement of Crude Oil is helping to strengthen the Canadian Dollar (USDCAD lower).

The Bank of Canada raised rates by a surprise 100 basis points this week, preemptively tightening policy. Despite the high price, yesterday’s CAD weekend further helped by the overall USD buying. However, that breakout higher failed and gave up some of those breakout gains today.


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