First break since October 6

The USDCAD has cracked above its 100 hour moving average at 1.23526. That was the first break since October 6. The pair is now moving up toward the 200 hour moving average at 1.23908. That moving average has not been broken since October 1.

First break since October 6

The swing high from Monday at 1.24089, a swing area between 1.2433 and 1.2445 and the 38.2% retracement of the move down from the September 29 high cut across at 1.24726.

A move back below the 100 hour moving average would spoil the day for the dip buyers now.

The CAD's run to the upside of late (lower USDCAD) has been warranted. Higher oil prices and expectations for a rebound in the Canadian economy with potential for a hike sooner rather than later has been the major influences.

As a result, the pair moved over 600 pips from the September 20 high (23 trading days) to the low reached today.

However, all good things come to an end (or there is a stall) and the technicals help to tell that story.

Today, the price DID move below the 1.2302 target from the daily chart below (see post from yesterday outlining that level), but momentum lower stalled at 1.2287, and when the price moved back above that target level there was some buying. The move above the 100 hour MA has increased the buying momentum..

USDCAD on the daily chart

Watching the falling 200 hour moving average for the next clue.