USDCAD moves to new highs

Technical Analysis

Bounced off 100 hour MA/swing level at the lows

The USDCAD it is trading to new session highs and in the process testing the high price from yesterday at 1.26072. Crude oil futures are getting smashed today after selling off sharply on Tuesday, railing sharply yesterday and tumbling lower again today. The May contract is currently down $-2.43 or -3.97% at $58.76. The fall is weakening the loonie (strengthening the USDCAD).  

The USDCAD move to the upside was also helped by holding key support at the session lows today.  Looking at the hourly chart, there is a swing area between 1.2542 and 1.2547. The 50% of the range for the month of March comes in at 1.25503.   Holding that level showed buying interest technically. It increases the MA and swing areas importance going forward. 

The buyers are making a play.  Can they keep the momentum going on a break of the high for the week?  

Invest in yourself. See our forex education hub.

Articles You May Like

Trump could declare national economic emergency to justify universal tariffs, CNN reports
Services index shows big jump in prices for December as companies fear tariffs
Brent slips 28 cents to $76.23/bbl as dollar strengthens
Dollar Regains Ground Ahead of FOMC Minutes, Aussie Weakens on RBA Fed Cut Prospects
Gold Price Today: Yellow metal prices gain Rs 500/10 gm so far in January, silver up by Rs 2,000/kg