The USDCAD saw a mix of bearish and bullish price action. Crude oil prices, which can influence the CAD, were higher earlier after Saudi Arabia and Russia met yesterday to discuss oil price support. The price of crude oil reached $69.83 but has since retreated to $67.71, down $0.63 on the day.
Additionally, Canadian producer and commodity price data fell short of expectations today, with commodity prices down 5.2% year on year and prices at production up only 1.4% year-on-year, compared to a 5% increase last month. . Lower pipeline inflation is also contributing to the weaker CAD, driving the USDCAD higher.
From a technical standpoint, the price is currently testing the 100 hourly moving average at 1.37236 and trending higher. The next key resistance zone lies between 1.3738 and 1.3752 (see the red numbered circles on the chart above), which also includes the rising 200 hourly moving average at 1.37493. A break above these levels would reinforce the bullish bias.
On the downside today, price attempted to break below an ascending trendline but failed to maintain momentum towards the next key support area near 1.3658 – 1.3665. This failed breakout helped reinforce the swing higher in trading today. The sellers had their shot.