The USDCAD has been moving from resistance to support today. The price started and held resistance at the 50% of the move down from the June 28th high at 1.02302. The rotation down found support buyers at the 100 and 200 hour MAs at the 1.0171 and 1.0184 levels respectively. In between is the 38.2% of the same move down at 1.01994.
Oil prices are up on the day today which has contributed to the CAD strength today.
For traders, stay below the 1.0200 and the market should next look for a break of the 100/200 hour MA to open the downside up further. Move above the 1.0200 level and traders should look to cover with the 1.0220 and 1.0230 the break targets needed to get above.
The price for the pair this week has been largely non trending with the low reached yesterday (against the 100 hour MA) at 1.0165 and the high reached today at 1.0230. That is only 65 pips. Surely, there is an extension in the cards for the pair between now and the end of the week. So watch the technical clues and look for the surge or plunge to take the pair on a quick run. The price and technical tools will tell the story. Be aware and be prepared for the move.
