1.25387 to 1.25474 is key swing area
WTI crude oil is trading up $2.33 as production cuts in OPEC+ will remain in place (at least for now – but start adding later). That is a gain of 3.88%. The price reached a high of $61.59 so far.
The move higher has helped the CAD move higher (the USDCAD lower). The price has moved into the key swing area between 1.25387 (home to the 38.2% retracement) and 1.25474. There have been a number of swing lows and highs between 1.25408 and 1.25478.
A move back below that area is needed to give sellers more confidence.
Already today, the sellers near the high leaned I can stay downward sloping trendline on the hourly and then the 100 hour MA. The price as also move below its 200 hour moving average of 1.25812. That moving average is getting closer to the downward sloping trendline (see green line in the chart above).
If the 38.2% retracement can be broken, the traders will next target a swing low going back to March 23 at 1.2520.