Can't break above the Friday high.
The weaker than expected Ivey PMI, took the USDCAD to new session highs. However, the price did stall ahead of the Friday high at 1.3436 (high reached 1.34348), and we are trading back down to the pre-release levels.
Looking at the 5- minute chart, the price spike took the price above a channel trend line and back below. If the pair is to go higher, it needs to get back above that line and then the 1.3436 level. ON the downside, the 1.3408-148 is downside support.
Saudi oil minister is speaking and the price of oil has moved lower from about $53.80 to $53.40. The price of oil has been confined in range since December ($50 to $55)
Trend line support comes in at $51.93. The steady price has led to more rigs in the US while OPEC tries to keep the supply down. Weaker oil is typically not good for the CAD (higher USDCAD). Looking at the Crude oil daily chart below, the trend line connecting lows going back to December comes in around the $51.95 level. The 100 day MA is up at $50.90. Those are key levels on weakness.
