25 Sep 2013
Oil fuels the USD/CAD recovering to 1.0310
FXstreet.com (San Francisco) - The USD/CAD recovered all its early losses and after bouncing at 1.0285, the US dollar is now trading at previous levels around 1.0315. At the same time, the Oil crude is performing its fifth negative day in a row, fueling the pair's bounce.
Early in the American session, the USD/CAD broke down its 1.0305/15 and fell to fresh intra-day low at 1.0285. As ForexLive analyst Adam Buttom said, "a sharp seller order hit the pair ahead of the options expiry, knocking it down to 1.0286." However, "there was no big expiration so the move was more-likely flow released."
The USD/CAD is currently trading at 1.0315, 0.11% positive on the dat. The short term positive remains slightly bullish according to the FXstreet.com trend index in the 1-hour chart. However, indicators are mixed as the Momentum is pointing to the south while the CCI is bullish and the Stochastic and MACD are neutral.
At this moment, the Pair bounced is fueled by the decline in oil crude. Buttom commented that "the main issue for CAD right now is oil." Today, the Oil is performing its fifth straight negative day. Since September 18th, the US oil has lost $6.24 to price at lows since July 8th.
"US crude is near a 5-week low and Canadian oil is trading at a whopping $30 discount to WTI," affirms Buttom. "The widest spread since February." US oil is now trading at $102.36, 0.75% down in the day.
USD/CAD levels to watch
Back to currencies, the USD/CAD could face supports at 1.0285 (100-hour SMA) and 1.0270 (Sep 24 low), while on the upside, if USD/CAD manages to overcome the 1.0320/27 area (daily highs/38.2% Fib of 1.0560/1.0182), next resistances are seen at 1.0350 (100-day SMA) and 1.0370 (50% Fibo level).
Early in the American session, the USD/CAD broke down its 1.0305/15 and fell to fresh intra-day low at 1.0285. As ForexLive analyst Adam Buttom said, "a sharp seller order hit the pair ahead of the options expiry, knocking it down to 1.0286." However, "there was no big expiration so the move was more-likely flow released."
The USD/CAD is currently trading at 1.0315, 0.11% positive on the dat. The short term positive remains slightly bullish according to the FXstreet.com trend index in the 1-hour chart. However, indicators are mixed as the Momentum is pointing to the south while the CCI is bullish and the Stochastic and MACD are neutral.
At this moment, the Pair bounced is fueled by the decline in oil crude. Buttom commented that "the main issue for CAD right now is oil." Today, the Oil is performing its fifth straight negative day. Since September 18th, the US oil has lost $6.24 to price at lows since July 8th.
"US crude is near a 5-week low and Canadian oil is trading at a whopping $30 discount to WTI," affirms Buttom. "The widest spread since February." US oil is now trading at $102.36, 0.75% down in the day.
USD/CAD levels to watch
Back to currencies, the USD/CAD could face supports at 1.0285 (100-hour SMA) and 1.0270 (Sep 24 low), while on the upside, if USD/CAD manages to overcome the 1.0320/27 area (daily highs/38.2% Fib of 1.0560/1.0182), next resistances are seen at 1.0350 (100-day SMA) and 1.0370 (50% Fibo level).