Oi looks toward $41. Down 1.4%
The USDCAD fell in London morning session but is back higher after testing and holding near the 100 hour MA and the underside of a broken trend line (at 1.3264). Crude oil prices are once again lower and looks toward $41 per barrel (see Ryan's post). This is reversing the trend back to the upside for the USDCAD and it now eyes the highs from yesterday at 1.33398.
Looking at the daily chart, a break of the high will then look toward the swing high from August at 1.3352. Then the high price for 2015 at 1.34559. In October, the low bounced nicely off trend line support and the swing high going back to March 2015.
Oil prices are just now breaking the $41 level and USDCAD is within pips of yesterday's high. It is tough to get in the way of the falling knife in the oil complex and until it bottoms, the CAD will likely remain weak (USDCAD higher). Oil down 2.25% now...
