The UsdCad is trading at 1.1968, ranging between 1.1895 and 1.2120. On the other hand, the price is under yesterday's close at 1.2195. Checking the hourly graphics, we see that the 20- and 50-day EMA are under 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 supports at 1.2432 (October 23rd low) and 1.2121 (October 22nd low) were broken, the traders are watching the next level at 1.1775 (October 17th low).
Last week, the pair ranged from 1.1900 to 1.3000, responding to the crude barrel price swings. As the crude barrell is profit taking from its intraday high, it helps the UsdCad to confirm the 1.1900 support.
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 43 points, rebounding from the oversold area. The volatility per hour could reach 270 pips. Checking the daily graphics, the current price is over the 50.00% (1.2589) and under the 61.80% (1.3422) Fibonacci retracements.
|