Highs over the last three days have formed a ceiling
The USDCAD moved up to test the highs from Tuesday and yesterday, and for the 3rd day backed off. The high reached 1.27364 which was just above the high from Tuesday at 1.28362. Yesterday, the high stalled at 1.28288 – 8 or so pips short of the high.
Oil prices fell further after the OPEC decision but the price has since recovered and trades near $66.00, up on the day now. Lower oil tends to weaken CAD (higher USDCAD) and visa versa.
The USDCAD trades around 1.2830 currently. So it is not far off the highs. A move back below 1.27987 (high from last week) would be eyed to ease some of the bullish bias (despite the ceiling). The low corrective price after the high has stalled near that level (be aware).
Ultimately, a move back below the 100 hour MA at 1.37703 and the rising 200 hour MA at 1.37267 would be needed to tilt the bias back to the downside. Yesterday, the price low stalled just above that level and bounced. The price has not closed below the 200 hour MA since November 10.
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