Sellers taking control.
WTI crude oil is rebounding in trading today with the price up $0.70 or 1.57%. That has the USDCAD trading lower as a result.
Technically, after a spike in the late Asian /early European session that was quickly reversed, the price of the loonie has traded below its 100 hour MA for the last 6+hours of trading (blue line at 1.37106. The last few hours has seen a bigger push below the 200 hour MA at 1.3698. That move has the pair down testing trend line support at 1.3679. Support is being tested. Getting below and staying below will have traders eyeing the lows of the week from Tuesday and Monday. On Monday, the pair tested its 38.2% of the move up from the April 24th low. That level comes in at 1.3646.
With the price trading down, oil rebounding and technicals more bearish, BUT the pair still trading more toward the upper range, sellers will be cautious. However, close resistance can come in at 1.3700, or that 100 hour MA at 1.3710. Stay below and more corrective action can occur.