Forex: USD/CAD testing support at 0.9894

FXstreet.com (Barcelona) - The USDCAD has been the recent casualty of rising crude prices and the climatic situation surrounding the Gulf of Mexico. Having taken a plunge late last week, the pair is now struggling in sight of the 0.9900 level after falling below its 50-hourly SMA earlier this morning during European trading.

According to Léa Torbey Meouchi, an Analyst at Swissquote Bank SA, "The major event this weekend affecting markets was the tropical storm Isaac which shut production out of the Gulf of Mexico. The disruption left the country short of twenty-four percent production and 8.2% natural gas output. First generation Crude oil rose back within Thursday's range after trading beneath the weekly range on Friday due to a general slump in consumer confidence. Moreover, crude has been advancing since June 29 and is now trading right above the 61.8% Fibonacci retracement of the May 1st-June 29th downward move."

Presently the price of crude has settled at USD $96.97, up +0.85% today - this has in turn driven the pair down -0.25% below its opening. According to the analyst team at Mataf.net, the pair is testing its short-term support at 0.9894 - a break below this level will initiate 0.9878 and 0.9851.