The USDCAD is being pushed and pulled by fundamentals today. On the positive side for the Canadian dollar, oil prices are higher with the price of WTI crude oil extending above $80 for the 1st time since April. That is bullish for the CAD (bearish for the USDCAD).
On the negative side for the CAD, is that the USD fundamentals were much stronger today. Initial jobless claims showed strong job growth. GDP showed strong economic growth. Durable goods orders showed strong consumer/business growth and even the trade balance was lower than expectations. All those fundamentals help to to support the USD and should weaken the CAD.
As a result, the USDCAD is off its lows but still down on the day (modestly).
Technically, the move back to the upside has been able to take the price above the 100 and 200-hour moving averages between 1.3182 and 1.31896. The current price is trading at 1.3194 above those levels.
As long as the price remains above, the buyers remain more in control. On the top side, getting above a swing area between 1.3199 and 1.32087, would increase the bullish bias and have traders looking toward the 50% midpoint of the July trading range at 1.3239.
Conversely if the price cannot remain above the moving averages, the bias would shift back to the downside as the ups and downs continue in this pair.
