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Loonie Gains Traction as Crude Rallies
The USD/CAD’s has fallen into two-month low under 1.2960. This brings the 100-day moving average at 1.2899 into scope as target support. The Canadian dollar is being underpinned by a rally in oil prices. Front-month NYMEX crude is trading above $50 for the first time since late July. There are also lengthened odds of a rate hike form the Fed following the weak September employment report out of the U.S.
Crude continued to rally following a report mid-week that showed that inventories dropped by 1.2 million barrels, according to the American Petroleum Institute. The EIA reported in its short term energy outlook that production declined by 120K barrels in September which was more than expected.
The currency pair broke through trend line support at 1.31 which is now seen as robust resistance. Additional resistance is seen near the 20-day moving average up at 1.32. Support is seen near the 100-day moving average and then an upward sloping trend line that comes in near 1.28. Momentum is negative as the MACD prints in the red with a downward sloping trajectory.
The post Loonie Gains Traction as Crude Rallies appeared first on Forex Circles.
