The USDCAD is running to the upside after breaking above it 200-hour moving average at 1.32665 earlier today. That was the first break above that moving average since December 13. The break above give the buyers a go-ahead to push to the upside.
That run to the upside took the price above the natural resistance at 1.3300. It also broke above a swing low going back to December 20 at 1.33107. That area between 1.3300 – 1.33107 will now be close support for buyers looking for more upside momentum.
On the topside and next major target comes against the 38.2% retracement of the move down from the December high to the December low at 1.33451. There is a swing area between 1.3348 and 1.3353 that is also in play on further upside momentum (a key target).
For December, the price trended lower. Getting above the 38.2% retracement is required to show that the buyers can take back control. The move above the 200-hour moving average was a positive/bullish step. We will see if the momentum can continue. Watch 1.3300 for support.
This article was written by Greg Michalowski at www.forexlive.com. Source