The UsdCad is trading at 1.1648, ranging between 1.1464 and 1.1663. On the other hand, the price is over yesterday's close at 1.1502. 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 1.2000, 1.1775 (October 17th low) and 1.1537 (October 15th low) were broken, the traders contemplate the next level at 1.1306 (October 14th high).
After last week the pair rebounded from the key resistance at 1.3000 loonies, it's now trying to find a support in the 1.1400 area. As the crude barrel price found a support at 60 dollars, challenging even the 70 dollar mark, the Canadian Dollar is managing to breathe 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.
Meanwhile, the 60-minute RSI is at 54 points, after being very oversold. The volatility per hour could reach 210 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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