USDCAD trades to a new session low

Technical Analysis

Author: Greg Michalowski | usdcad

Volatile up and down day for the pair

The USDCAD has continued lower for the 7th consecutive hourly bar after peeking right at the 200 hour moving average (green line) at the session highs.

Volatile up and down day for the pair
The move lower did cut through a low floor area between 1.3033 and 1.3044 for the 2nd time today (see red numbered circles). The 1st try, bottomed at 1.3010 before reversing all the Asian session declines (and then some) on it's way up to the 200 hour MA. 

This current break, has the pair trading below the 1.3000 level now (trades at 1.2999 as I type). The next target on more selling would take the pair toward the lower trend line at 1.2980.

Sharply higher equities and higher crude oil prices are helping the risk on sentiment in to the commodity currencies including the CAD. The AUD and NZD are also higher.  Each of those currencies have gains vs the USD, EUR, GBP,  and CHF.  The CAD is still weaker vs the AUD and NZD today.  

The strongest and weakest currencies

WTI crude oil futures are trading up $1.84 or 4.27% at $44.91.

The US stocks are sharply higher with the S&P index up 55.64 points or 1.55% at 3633.21. The Dow industrial average continues to trade above the 30,000 level for the 1st time ever. It is up 432 points or 1.46%. The NASDAQ composite index is now up around 150 points or 1.26% at 12,030.
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