Inventory sees a draw in current week
The USDCAD spiked higher on the back of headlines on NAFTA saying that a US/Canada deal was unlikely this week. Today Canada’s Freeland is back in Washington for meetings. The dairy tariffs seem to continue to be one of the main sticky points in the negotiations. I am not sure what they do in the meetings. They have been going on for months and months now.
The rise sent the price up toward the 100 hour MA where sellers entered (blue line).
The price rise took the price above the 1.2974-798. That area has been a swing area going back to last week (see yellow area). The price has now moved down to retest that area after the weekly oil inventory data showed a drawdown. The private data last night showed a surprise rise in inventories. Oil prices moved higher which sent the price of the USDCAD back down toward the broken support area.
So far, that support area has held. Will the buyers come in against the level now? That is the risk area for buyers now…with a break below muddying the waters again.