USDCAD falls back to the 100/200 hour MAs

Technical Analysis

Author: Greg Michalowski | usdcad

Double top formed at the high today

 Double top formed at the high today

The USDCAD fell into the London fixing but is finding support at the 100 and 200 hour MAs (blue and green lines at 1.33506 and 1.33474). The ball got rolling to the downside after the pair stalled at the high from April 5th, and set a double top there (at 1.3402).  Remember that level should there be another run higher. 

Canada Manufacturing sales were weaker than expectations at -0.2% vs -0.1% (revision lower to 0.8% vs 1.0% previously). Crude oil is higher by $0.12 on the day at $63.51 but off the highs at $63.79.  Despite those "more negative for the loonie" facts, the CAD has moved higher. So technicals and flows seem to be a driviing influence.  However, with the MAs holding, perhaps the sellers are looking to reverse the bias once again.   Watch for support against the MAs below (with stops on a break below). 

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