The USDCAD is moving higher and has broken (well moved) above the 200 hour MA at the 0.9930 level. The range for the USDCAD is a scant 42 pips today. The low range for 2012 came in at 37 pips back on February 24th. This is consistent with the entire market, however, as there is little incentive by market participants it seems to do anything today (see chart of day’s range vs the 20 day average below).
The high for the day reached 091415 earlier. A move above this next target would look toward the 0.99501 (38.2% of the move down – see chart above) and 100 hour MA at the 0.9954 level. Ultimately, the price will need to get above the 1.00265 to 1.00504 levels to get traders excited (see daily chart below). The price has not been able to close above these levels over the last two months of trading (going back to January 25th).
Although the price is above the 200 hour MA level now, I would expect that if the price moves back below the 0.9924-30 area, that traders would simply give up and cover (and/or sell). Until the price can show momentum on a move above technical resistance, there is no real incentive to stay long for long.
