The USDCAD is on an upward trajectory in the early New York session, driven by dollar strength. Yields are showing signs of rebounding, with the 10-year yield up approximately 3.1 basis points at 4.87%. While this increase is modest, it’s pointing in an upward direction.
From a technical perspective, the USDCAD has surpassed its 100-hour moving average at 1.3703 and is now eyeing a well-known resistance zone that has limited price action in the last three tests. This area lies between 1.37358 and 1.37433, encompassing yesterday’s highs and last Thursday’s highs. Additionally, the swing high from October 6 also aligned within this range (indicated by red numbered circles in the chart above). To reinforce the bullish sentiment, a breakthrough above 1.3735 to 1.3743 is required.
Conversely, the price recently crossed above its 100-hour moving average and that level is now support. The level currently comes in at 1.37041 (see blue line in the chart above). Yesterday, after the dip below this moving average, corrections stalled the rallies (indicated by red arrows at the blue line on the chart above). Getting above that moving average today turned the sellers into buyers that led to the retest of the topside swing area.
Buyers are making a play with work to do above the key swing area in the USDCAD.
This article was written by Greg Michalowski at www.forexlive.com. Source