Technical Analysis

USDCAD trades between swing area in choppy trading today

Ceiling at 1.30268 to 1.3038. Floor 1.29842 to 1.2894

The USDCAD is higher on the day but trading in an up and down choppy range.

Looking at the hourly chart above, the highs for the day stalled near the low of a topside ceiling area between 1.30268 and 1.30382 (see green numbered circles and higher yellow area).  On the downside, the Asian session low stalled near a lower floor swing area between 1.29842 and 1.29894. 

The current price trades around 1.3000 level.

I would give the nod more in a favor of the sellers off the hourly chart. In yesterday’s trade, the rally to the upside stalled right at the 200 hour moving average (green line). In reversed sharply lower taking out the November 20 low at 1.30382 and the November 18 low at 1.3033 respectively. Stay below those levels is key to keeping the more bearish bias.

Helping the run to the downside, was risk on sentiment along with higher oil prices (strengthens the loonie generally). WTI crude oil futures are up about 1% today, but the market is ignoring that gain today. That could be an indication of over sold for the USDCAD. The technicals will help tell the story however. 

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