USDCAD runs higher as oil fall/stocks fall/US yields move higher

Technical Analysis

USDCAD runs higher

The USDCAD has spiked higher helped by:

  • Lower oil. Crude oil is trading down $1.69 at $77.86. The high price was at $79.85 today
  • Lower stocks. The major indices are all trading lower on the day with the NASDAQ down -0.80%. That has led to a move out of risk
  • Higher yields. The two yield is trading near its highs for the day near 4.36%. The 10 year yield is up 2.7 basis points at 3.886%

Looking at the hourly chart above, the low today stalled nearly low from yesterday. The inability to extend further to the downside gay buyers the go-ahead to push higher. Getting back above the 50% midpoint of the move up from the November 25 low at 1.35102 was also a positive/bullish development.

More recently, the price has spiked back above its 100 hour moving average 1.35794. The high price reached 1.35988 (just short of the natural resistance at 1.3600). The 200 hour moving averages at 1.36108. With the price of trading between the 100 and the 200 hour moving averages, the buyers and sellers will likely battle it out for additional control. A move back below the 100 hour moving average would give the sellers more control. Moving above the 200 hour moving average gives the buyers more control from a technical perspective.

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