The pair is heading some gains after two weeks of correction mode since the beginning of the New Year. Yesterday’s price action was quiet aggressive after some good macro data that push the USD to a strong close above the important 104.22 resistance line, which it today a very important support line. A move below the 103.93 line will trigger a second test of the recent lows.
Crude oil Vs USD/CAD
As we mention yesterday we see strong change in the relationships between Crude oil and this North American pair. As Canada is the biggest export of crude for the US we usually see a positive correlation between those two, however this correlation change dramatically since the last sell-off in crude oil price. We should expect that any further weakens in crude oil price will push the USD/CAD to new highs.
|Resistance||93.47 (10 DMA)||94.10 (14 DMA)||96.21 (50 DMA)|
The technical picture of this pair is very simple, weakness and more weakness. All the technical tests confirm that the down trend should continue, when the market is way below the moving average, and we didn’t have 3 significant up days in more them 3 month!!! All-time lows are around 1.0645 and 1.05 are the price action is heading that way. This technical picture will change only if the AUD will be able to close to the upside on the fourth day in a row.