Price moves above the 100 hour and 100 day MA now
Adam's post on the crude oil reversal lower in the subsequent boosting of the USDCAD (CAD selling) has painted the picture for the move from a fundamental standpoint. Let me add to the picture with a look at the chart a little more closely.
Looking at the hourly chart, the pair today initially moved lower taking out the low from Friday's unemployment day at 1.2308. However, support buyers against the 1.2300 level quickly pushed the price back to the upside. The last seven hours has seen a rotation higher.
The price did initially stall around the 200 hour moving average of 50% retracement area between 1.2350 and 1.23548. The pair traded above and below that area for around three hours as traders debated higher or lower.
However, the last hour or two as crude oil prices started to move lower, gave the buyers of the pair, a reason to push to the upside, and the pair as subsequently broken above another key technical area defined by the 100 hour moving average and 100 day moving average. Those levels come in between 1.23756 and 1.23792. The price high reached 1.23964 so far.
With the key 100 hour and 100 day moving average now being broken, staying above those levels would keep the intraday bias firmly in the upside direction.
Conversely, a move back below that area, would weaken the technical break storyline, and likely lead to a rotation back toward the 200 hour moving average/50% area.
Key breaks pushing the pair higher. Can the buyers keep control?