The USDCAD experienced a decline during the Asian and early European sessions, testing the high of a swing area with a low of 1.3600 and a high of 1.3616. Support emerged at the high of this swing area, prompting a move back above the 200 and 100-hour moving averages at 1.3630 and 1.36467, respectively (green and blue lines in the chart above).
Notably, after the break, the price found support at the 100-hour moving average (indicated by the blue line) before advancing higher. This was a strong bullish indication technically.
The momentum move upward is supported by positive yields, with the US 10-year yield up by 2.1 basis points and the 30-year yield inching closer to the 5.000 level at 4.985%, up 3.5 basis points.
What next?
On the upside, the pair is approaching a key resistance zone ranging from 1.3687 to 1.3700, where it encountered resistance in the recent past as denoted by the blue numbered circles on the chart above. Getting above that level opens the door for 1.3736 – 43.
In the video below, I clearly outline the technical details.
This article was written by Greg Michalowski at www.forexlive.com. Source