USDCAD makes a break for it. Extends above 200 hour MA with momentum

Technical Analysis

The USDCAD is making a break above the 200 hour MA and 38.2% of the move down from the high from last week (start of the last trend leg down that bottomed near the 100 day MA this week).

The break has been met with more momentum. The next target is at the 50% of the same move lower at 1.33977. The high from yesterday tested that level reaching a high of 1.3400 (just above that target), but momentum died and the price rotated back to the downside. The 1.34078 is another old floor from November 9 that if broken would open the door to the upside.

The one concern is that the price of oil is down -12% in trading this week, and although the price of the USDCAD is higher from a week ago, the price action has been up and down with a positive tilt. Normally a sharp fall in crude would lead to a bigger CAD fall (higher USDCAD). The USDCAD is up around 1% on the week.

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