Do the buyers come in? Oil rebound supporting the CAD.
Crude oil futures are trading up $1.58 or 3.42% after falling 8% in yesterday’s trading. Inventory draw down was less than expected at -497K vs -2500K expected but the private data released late yesterday showed a +3450 build.
The fall has taken the price back below the old 2018 high from earlier this month at 1.34438 and moves into support levels starting with a swing area in 1.34159-234 and a trend line at 1.3415. We are currently testing that area as I type. Will the buyers lean RIGHT here? IF so, buyers will still need to get the price back up above the old 2018 high at 1.34438 (again).
A move below this area, has the 100 hour MA at 1.3403. That is where the price stalled the falls on Monday (based there). A move below that would sour the mood for the bulls more with the 1.33813 (200 hour MA) the next step in a more bearish scenario.