Highs over the last three days have formed a ceiling
The USDCAD went up to test the highs of Tuesday and yesterday, and for the 3rd day retreated. The high reached 1.27364, which was just above Tuesday’s high at 1.28362. Yesterday, the high stopped at 1.28288 – 8 or so pipes short of the high.
Oil prices have fallen further since the OPEC decision, but the price has since recovered and is trading near $ 66.00, so far. Bottom oil stores to weaken CAD (higher USDCAD) and vice versa.
USDCAD is currently trading at around 1.2830. So it’s not far from the highs. A move back below 1.27987 (high from last week) would be eye-catching to soften some of the bullish bias (despite the ceiling). The low corrective price after the high has stopped near that level (be aware).
Finally, a move back below the 100-hour MA at 1.37703 and the rising 200-hour MA at 1.37267 would be needed to tip the bias back to the downside. Yesterday, the low price stopped just above that level and rebounded. The price has not closed below the 200-hour MA since November 10th.
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