The UsdCad is trading at 1.1604, ranging between 1.1603 and 1.1894. On the other hand, the price is under yesterday's close at 1.1814. 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 key support at 1.2000 was broken, the traders are watching the next levels at 1.1775 (October 17th low), 1.1537 (October 15th low) and 1.1306 (October 14th high).
Last week, the pair ranged from 1.1900 to 1.3000, responding to the crude barrel price swings. As the crude barrell is climbing, the Canadian Dollar is doing the same against the American Dollar.
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 19 points, very oversold. The volatility per hour could reach 180 pips. Checking the daily graphics, the current price is under the 38.20% (1.765) and over the 23.60% (1.0724) Fibonacci retracements.
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