USD/CAD slipped lower in June as crude Oil prices were climbing after finding support at the $50 level, where it formed a strong support area. US crude climbed to $61 by the middle of July, but reversed back down from there and has been on a bearish trend since then.

USD/CAD consolidated for a couple of weeks until the decline in Oil resumed and USD/CAD turned bullish after that as the CAD kept following Oil prices. The 100 simple MA (green) and the 100 smooth MA (red) provided resistance for some time but they were eventually broken as the buyers gained more control.

Once they were broken, these moving averages turned into support immediately, especially the 100 smooth MA. This moving average has provided support twice this week during pullbacks lower. Tonight, we saw another pullback lower during the Asian session but the pullback was pretty weak and the buyers didn’t even wait for the 20 SMA (grey) to catch up with the price on the H4 chart. So, buyers remain in control of this pair and we will try to pick an entry spot on the long side when another retrace lower takes place.