Crude oil rebounding a little
The USDCAD trended higher so far today, but is seeing some consolidation near the highs over the last 4 or so trading hours.
Looking at the hourly chart, the move to the upside was more or less a straight line higher with the price high reaching 1.2772 into the London late morning. Since then, the price has consolidated between the high at 1.2772 and the 1.2735. The current price is nearer the high at 1.27637. The low did stall ahead of a swing area between 1.2729 and 1.27326 (swing lows and highs going back to July 16 through July 21)
Drilling to the 5 minute chart below, the price has remained above the rising 100 bar moving average all day long. That moving average currently comes in at 1.27425 (and rising). The consolidation since the peak has allowed for the moving average to catch up with the price. A move below it, and then below the 38.2-50% of the last trend move higher between 1.27294 and 1.27395, would weaken the trend idea for the day. Until then, the buyers still remain more in control and the trend remains intact.
PS. The price of oil fell sharply to $62.85 earlier today, but has seen a rebound to the current level of $63.77. That’s near the mid day range (the high reached $64.74). Should oil continue to rebound, that could help the loonie (lower USDCAD). Keep an eye on oil.
