Crude oil moves toward $47
The USDCAD took off to the upside - moving away from the converged 100 and 200 hour MAs in the process (blue and green lines at 1.3348 area). The price raced up to the 1.3400 area (the high reached 1.34028). In the process, the price extended above a trend line resistance line at 1.3385. The price is down retesting that line. The level also corresponds with the highs from Friday's trading. Crude prices are down about -$0.80 or 1.67%. That - and the technical move away from the MAs - seems to have helped the pair push higher.
Can the price stay above that line now? That is close risk for longs now.
Key target on the topside will be the 100 bar MA on the 4-hour chart at the 1.3394 level and the 50% of the move down from the March high (at 1.3398). Those levels were broken on the run higher, but we are now trading below that resistance level. If we are to go higher, the price needs to get back above and stay above to keep the trend going.
So there is a little battle going on, after the quick run higher. Close support at 1.3385. Close resistance at 1.3394-98.
