USDCAD falls down to test the rising 100 hour MA

Technical Analysis

Crude oil prices are moving higher helping to strengthen the loonie

The USDCAD is moving to a new session low and in the process is looking to retest the 100 hour MA (and a swing area). The 100 hour MA is currently at 1.28314. The swing area comes in between 1.28249 and 1.28322. Also in play is the 50% retracement of the move up from the low last week at 1.28219. So a cluster of support in the 1.28219 to 1.28324 area.  

Move below the area and it will open up the downside for more probing. The is not a lot of technical levels until the 61.8% at 1.2790. There is also a swing area between 1.27888 and 1.27918.  

Hold support here and getting back above the 30.2% retracement 1.28535 would take some of the pressure off of the selling momentum, and give the buyers some breathing room.

Helping to strengthen the loonie is the price of oil. That is currently trading up $1.11 or 2.36% of $48.13. The high for the day reached $48.50. The low was down at $46.16

For bank trade ideas, check out eFX Plus

Articles You May Like

AUDUSD bases near support. Stretching to new highs above swing area at 0.6505 to 0.6513.
Silver Price Forecast: XAG/USD remains bearish biased, dips below $30.30
Gold price extends decline on bullish US Dollar, investors brace for US PPI data
The USDJPY, GBPUSD and USDCHF are each using the 100 hour MA as a risk/bias defining level
Gold price today: Gold prices jump Rs 2,200/10 gms in a week, silver surges Rs 900/kg

Leave a Reply

Your email address will not be published. Required fields are marked *