USDCAD races higher after business outlook survey

Technical Analysis

Author: Greg Michalowski | usdcad

Surging toward last week's highs

Surging toward last week's highs
The USDCAD is surging after the weaker than expected business outlook survey.

Looking at the hourly chart above, The pair has surged back above the 100 day MA, the 100 and 200 hour MAs (at 1.3336-414) and a swing area at the 1.3368-738.  A topside trend line connecting the recent highs comes in at 1.3390. The high from last week comes in at 1.3395. The hgih from April 5th comes in at 1.3402.

Risk for longs now will be eyed at the 1.3368-72.

The run higher is in contrast to what was a stronger NA opening for the loonie. However, prior to the report, the pair did find support buyers near the 1.3296 swing lows from April 1 and April 3. On Apirl 9th, the price dis extend below that area, only to fail and run back higher.   Buyers against that level were lucky to get the benefit of the much weaker survey data.

Focus now, however, is on the 1.3368-73 area.    

PS On the last runs higher, the pair formed pennant formations, only to break lower.   Does it do the same thing after this run higher?
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