38.2%, 200 hour MA and trend line in 1.3494-1.3501 area
The USDCAD is higher after the data this morning, and is up testing a cluster of resistance defined by the 38.2% of the move down from the May 18th high (at 1.3494), the 200 hour MA (at 1.3497), and trend line resistance (at 1.3501). Last Friday the price stalled at 1.3497. The price has not traded above the 200 hour MA since May 15th.
A move above this cluster of resistance should solicit more buying as the market makes another step to the upside. Earlier today, the price moved above the 100 hour MA and tested and held that MA on the correction. The price also moved back above a broken trend line in the move higher today.
Key test for the buyers/bulls. Will they use the levels to take profit (with stops above), or will they keep the bullish run higher and through?
Crude oil is trading down -$0.55 to $49.25 (and trading at the low). That is helping to weaken the CAD as well in trading today.
