100 day MA at 1.31772

The USDCAD extended above its 100 day moving average at 1.3177 earlier in the day. That was the 1st look above its 100 day moving average since December 11. Looking at the daily chart, the price also extended above the 61.8% retracement of the move down from the November high to the December low at the 1.31833 level. The move above sent sent the price up toward the 1.3200 level.

USDCAD trying stay above its 100 day moving average at 1.31772

Since peaking against the natural resistance level at 1.3200, the price has rotated back to the downside. In the process the pairs price has been retesting that 100 day moving average.

Looking at the hourly chart below, the price has been trying to base against that 100 day moving average over the last 6 or 7 hours of trading. The good news for the buyers is that the moving average continues to find support buyers. The bad news is that the upside momentum is somewhat limited. So the battle continues at the key moving average level. More momentum to the downside, and below the swing high from Thursday 1.3170, would likely see more probing to the downside. The upward sloping trendline on the hourly chart comes in at 1.3160. Below that is the broken 50% retracement at 1.31389.

Hold against the 100 day moving average will eventually lead to more buying with the 1.3200 level as a key target to get and stay above.

USDCAD on the hourly chart

Helping the upside is the continued weakness in the oil prices:

  • crude oil futures are trading down $1.62 or -2.97% of $52.57. The low reached $52.13
  • Brent crude oil prices are down $-1.87 or -3.08% at $58.82. The low for it fell to $58.50.