The UsdCad is trading at 1.2307, ranging between 1.2002 and 1.2378. On the other hand, the price is over yesterday's close at 1.2003. Checking the hourly graphics, we see that the 20- and 50-day EMA are over the 200-day EMA.
The resistances are at 1.3000 (key), 1.3365 (July 1st, 2004 high) and 1.3788 (July 17th, 2004). As the support at 1.2432 (October 23rd low) was broken, the traders are contemplating the next at 1.2121 (October 22nd low), 1.1775 (October 17th low).
In the last sessions, the pair found a strong resistance at the 1.30 level, which is understanble, given the high levels of overbuying that its Relative Strenght Index (RSI) show in the daily charts (at 70 points). Despite that, it must be remembered that the crude barrel price fell from the 70 dollar mark, which allowed the pair to stop its fall from 1.1901.
Canada has the largest oil reserves in the World, but the extraction cost is higher than Saudi Arabia's. So, the swings in the crude price have a big impact on the loonie. Also, it's rumoured that OPEC will cut production for the second time.
Meanwhile, the 60-minute RSI is at 57 points, rebounding from the oversold area. The volatility per hour could reach 450 pips. Checking the daily graphics, the current price is over the 50.00% (1.2589) and under the 61.80% (1.3422) Fibonacci retracements.
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