USD/CAD is moving back to the previous consolidation mid point off the back of the oil move

USD/CAD 30-minute chart

USD/CAD has had a bit of a rollercoaster on Thursday as earlier on the price moved higher and met resistance just ahead of 1.3250. Since then the oil inspired CAD strength has taken USD/CAD down to 1.3185, 65 pips lower from the highs and through the 1.32 figure.

Earlier in the session, it was announced that the OPEC+ JMMC groups decision to give the countries not compliant with the earlier agreement a grace period until the end of December.

This led to an oil price rise and a subsequent fall in USD/CAD. The dollar index is also down on the session around 0.18% with only GBP struggling against the greenback. Looking at the chart now and the internal trendlines have played a big role in price action today. The blue downward sloping line was broken first to the upside and then retested before the move continued. The exact same thing happened with the purple trendline and at the moment the price is retesting the level.

The support area that is in focus next is the orange box near 1.3170. This is the point of the consolidation where the price has reacted the most. The indicators are both bearish. The Relative Strength Index is under 50 and the MACD histogram is red with the signal lines following it under zero.

Additional levels