Yesterday’s 5%+ fall in oil, sent USDCAD higher but sellers trying to take more control again
The price of crude oil tumbled yesterday after OPEC agreed to extend production cutbacks for an additional 9 months. Sounds bullish for the price of oil, right? The problem is it was largely anticipated and the technicals in crude started to turn more bearish. Looking at the daily chart below, the price fell below the 100 AND 200 day MAs. The 200 day MA is at $49.52. The high today has reached $49.32 (trades at $49.20 currently). Stay below is more bearish. On the downside, the $47.76 is trend line support. That trend line was broken in early May, but then reestablished as support (red circle 4). A move below that trend line will be more bearish technically.
Forex technical analysis: USDCAD lower on the day. Crude oil up a bit now.
