The 100 and 200 day MAs are around the 1.3300 area
The USDCAD has moved back toward the 100 and 200 day MA levels. Those levels come in at around the 1.3300 level. A move back below the 100 and 200 day MAs would be more bearish for the pair.
The pair’s earlier run higher was helped by a break of a topside trend line at 1.3326. That led to a run to the 1.33439 high for the day. However, that broken trend line was re-broken and the price moved lower.
Fundamentally, the CAD has been weakened by sharply lower oil prices. The price of crude oil futures are currently trading down $-2.22 or -4.14% at $51.40 in volatile trading.
The CAD has gotten a little push back higher (lower USDCAD) on the back of rebounds in stocks, a surprise build in crude oil inventories of 2.3M vs an expected draw of -2.7M, and a recovery in debt yields as well.
However, technically, the price will need to move back below the daily MAs to solicit more selling in the pair. Conversely, it will also need a run back above the topside trend line (again) at 1.3326 to keep the buyers happy as well.