USDCAD races higher

The UAE news that they might look to leave OPEC, has helped to push the price of oil initially lower and that seems to be helping the USDCAD to the upside (lower oil can help the CAD at times).

Technically, the pair is being helped by a rebound back above the 200 hour MA at 1.3575 and the 100 hour MA at 1.3598.

Looking at the complete price action today, in the Asian session the price tried to extend above the 100 hour moving average only to find willing sellers against that level. The subsequent fall then tried to stall against the 200 hour moving average, only to break below that level as well. The low price reached 1.3554, but rebounded back to the 200 hour moving average.

When that 200 hour moving average was rebroken to the upside, and then momentum took the price back above the 100 hour moving average, the bias shifted back to the upside, and we are now seeing an additional momentum run higher.

The high price from yesterday at 1.36412 is the next target. The high price for the USDCAD just reached 1.3638, just below that level. A break above would have traders targeting the extremes from this week and the last Friday high between 1.36579 and 1.36649.

For the week, the low was reached on Monday. That low was helped by a break of the 100 hour moving average. On Tuesday, Wednesday and Thursday, the 100 hour moving average tried to stall each dip. Admittedly there were modest breaks below the moving average line, but most of the price action was above that 100 hour moving average (follow the blue line). Buyers were in control.

Today's move to the downside gave the sellers the shot to extend lower. However the failure on the breaks of both the 100 and 200 hour moving averages has traders rethinking the downside argument. Support is back at the 100 hour MA. Stay above is more bullish. .