USD/CAD Keeps Making Lower Highs As Crude Oil Keeps Pushing Higher - Forex News by FX Leaders

USD/CAD Keeps Making Lower Highs As Crude Oil Keeps Pushing Higher

Posted Monday, January 23, 2023 by
Skerdian Meta • 2 min read

USD/CAD was quite bullish until October last year, adees the sentiment remained negative and the USD surged higher as the only safe haven left, being propelled higher by the fast pace of rate hikes from the FED. But, the price reversed in October after the FED softened the rhetoric and since then this pair has been making lower highs, as shown on the daily chart above.

The 100 SMA stopped the decline for a while in November but the bearish momentum resumed and this pair broke below that moving average, which has turned into resistance now, after last week’s rejection. Although it’s still not making any new lows since then, but the pressure remains on the downside.

 USD/CAD went back down after climbing above 1.35 and is trading near the lows for the past few weeks, after having seen its last upside jump being rejected by the 100 SMA. This month’s lows at around 1.3320s are in focus now and if the decline continues, we could see the downside momentum extend toward the November lows at 1.3220s.

US WTI Oil H4 Chart – Moving Averages Holding As Support

Crude Oil testing last week’s high

The upside momentum in crude Oil since the beginning of this year has also helped buyers in crude Oil. Oil had been quite bearish last year and on the larger charts it’s still bearish, but it is giving signs of a bullish reversal. WTI Oil has been climbing since the beginning of 2023 and today buyers are retesting the highs from last week at around $82.50-60s. We saw another rejection off that resistance zone earlier today, but the price is still close to it. So, let’s see if buyers will push crude Oil above that zone or if a bearish reversal will follow in the days ahead.

US WTI Crude Oil Live Chart

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