October 01, 2024 at 03:29PM
The USDCAD pair has moved lower during the North American session as declining US yields and rising oil prices weigh on the pair. Technically, the price has fallen below the 200-hour moving average at 1.3509, while finding support near the rising 100-hour moving average at 1.3494. Trading between these moving averages reflects a neutral technical bias.
Yesterday, the price briefly broke above the 200-hour moving average and surpassed the 50% midpoint of September’s trading range at 1.35328 but failed to sustain the momentum, closing lower.
Today, the price once again rose above the 50% level but quickly retreated. Buyers had their opportunity but failed to capitalize.Buyers had their shot and they missed.
Traders now await the next shove with momentum. Can the price decline continue with a break below the 100 hour moving average? If so, 1.3486 followed by a swing area near 1.3463 would be the next downside targets.
The price starts to trade back above the 200-hour moving average, a rotation back 25th% 1.35328 cannot be ruled out.
Crude oil is sharply higher trading at $70.22. That’s up over two dollars on the day.
Recall that in April when on April 13 when Iranian last missiles toward Israel in retaliation for the Israeli bombing of the Iranian Embassy in Damascus, crude oil at the time was trading near $86, but to fall after the attack had inflicted limited damage with most of the missiles shot down. The price of crude oil is much lower at $70 which may change the dynamics a bit. US stocks at the time moved lower, bottoming on April 19 at 4953.56. Before starting it move back to the upside.
This article was written by Greg Michalowski at www.forexlive.com.
