Do we see buyers take a little more control?
The USDCAD held a lower trend line at the lows today. That trend line was broken yesterday but failed (see red shaded area). There were two retests of that lower line.
We are now up testing a level above at 1.2522 (see red line and red circles numbers). That level was a low floor, that turned to a ceiling over the last few days. A move above is more bullish for the pair.
We are now seeing a break above the 1.2522 level as I type.... That is more bullish technically as now the trend line held and the upper ceiling has been broken. Stay above keeps the buyers in firm intraday control.
Having said that, the buyers may be more in control intraday, but their is more work to be done, to turn the tide more to the bullish side. The topside trend line at 1.2555 and the 100 hour MA at 1.2559 remain as a key resistance level to get to and through. The USDCAD has not closed above that MA line since July 12th and I would expect a test should solicit sellers.
Crude oil is not working in the USDCAD bulls favor. Crude oil is up $1.05 today. Typically, a rise in oil supports the CAD (USDCAD lower). However, the technicals in the pair are saying that the buyers in the pair are more in control and the rise in the crude is not all that important (at least for now).
