Oil price reversal helping to weaken the CAD
The USDCAD has returned back toward the highs. A move back out of stocks, lower oil price are helping to contribute to the loonies decline.
Technicals are also helping. The USDCAD moved lower earlier in the session and at the lows, retested the 200 hour moving average. Buyers leaned against the level and helped to push the price higher.
The high from yesterday at 1.28362 is now the next key target. Close support comes in at 1.2799 which was the high from last week’s trade. Below that the 200 hour moving average 1.27503 (and moving higher) is the next target.
The news of the omicron case in the US has helped to weaken oil (and the CAD). The price is now down about -$1.50 at $65.50. That is just off the low for the day at $65.41. The high for the day reached $69.47.
US stocks have also given up their gains. The Dow, S&P and Nasdaq are now all down, as is the Russell 2000 index of low cap stocks.
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