High for the day, took out the high from yesterday but only by a few pips
The USDCAD gapped lower after the weekend USMCA agreement. Friday closed just above the 1.2900 level. The high on Monday was up at 1.2884. That gap will still be eyed, but what I know is that there needs to be a bullish tilt.
Looking at the USDCAD, the price did bottom at 1.27816 on Monday, the price chopped higher yesterday. Today, the high from yesterday was broken but only by a few pips. Off the low at 1.27818, the price correction moved to 1.2843 or 62 pips. Relative to the move down from last week’s high at 1.30813, that is not much of a bounce. In fact, it is kinda weak.
We just moved down to a new North American session low and in the process tested a lower trend line at 1.2816. The oil inventory data just came out with a higher than expected build in inventory. That is giving the USDCAD a bid (weaker CAD) off of the low. If the highs from yesterday and today are to be broken, the bulls are still trying.
If on the other hand, the market can’t rally and the trend line is broken, that weakens the technical picture more for the pair.