The USDCAD has been moving higher as the price of oil extended below the $76 level for the 1st time since July 21. There has been a bounce higher in that price since reaching the low, and it bounce is being reflected by a stalling of the USDCAD above and below its 200-hour moving average at 1.3787. The 61.8% retracement is just above that area at 1.37952.
The 200-hour moving average (61.8%) area will be a barometer for buyers and sellers as the market ponders not only oil but the run higher in the USDCAD pair. Move above will be more bullish and have traders looking toward 1.3813.
A move below with momentum without traders looking back toward the 50% midpoint of the move down from last week’s high. That level comes in at 1.37634.
USDCAD is trading above and below the 200 hour MA