Commodity Declines Today Lead To A Higher USD/CAD

The commodity declines today have pressured the commodity currencies under pressure.

Oil prices are down around $1.50 today and is back down testing the $60 per barrel price after the pre Memorial Day holiday run up.  This has led to an increase in the USD/CAD back toward the 100 hour Moving average. The weaker than expected Case Schiller Index should also pressure the Canadian dollar as Canada is a big exporter of lumber to the US for housing and the data was not all that positive.

The 100 hour moving average comes in this morning at the 1.1324 level.  The USD/CAD moved through the level earlier today,but could not sustain momemtum.  A 2nd break is needed to confirm, the short term bottom is in place and further correction higher is likely.  Until then, however, the bias remains to the downside.  Watch the level closely.  A break above followed by new highs (above 1.1354) will be needed to confirm the corrective trend higher is likely.

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