Forex technical analysis: USDCAD reverses. Back above the 100 and 200 hour MAs

Technical Analysis

Author: Greg Michalowski | usdcad

Poloz helps the bulls take back control.

Yesterday, the 50% retracement stalled the fall near the 1.2800-04 area.  I outlined that key technical development in a post yesterday.

The price inched higher. Stalled at the 100 hour MA in the London morning session, but on the BOC Poloz comments today, shot through both the 100 and 200 hour MAs at 1.28709 and 1.28873 respectively (blue and green lines in the chart below).

Look now for the 200 hour MA at 1.28873 as a risk levels for longs as the pair swings/reverses the technical bias more to the upside on the MA breaks.  Stay above is more bullish.  Move below and the waters get more muddy for the pair.  

On the topside, the underside of the broken trend line comes in at 1.2929. The price spike higher today did take the price above that level, but quickly retreated. A move above that level will look toward the 1.2958-606 area.  Above that is the double top at 1.3000.