The USDCAD rebounds higher to test a key barometer at the 100 hour moving average

The USDCAD has spiked higher over the last few hours after testing the low from yesterday and a swing area down to 1.3494. The inability to extend with momentum to the downside gave buyers the opportunity to stick a toe in the water near the floor area. The last few hours have seen the price move higher. Oil prices may have contributed as they gave up early gains and now trade back below the $90 level.

The rise in price has now taken the price to test this falling 100 hour moving average at 1.35473. That moving average will be the next barometer for buyers and sellers. Move above and we should see further upside momentum. Stay below (there should be sellers against the level with a stop above) and a rotation to the downside could be reestablished.

The good news for the buyers is that the floor area did hold support yesterday and today. However, the short term momentum has definitely been controlled by the sellers (helped by rising oil prices), and that falling 100 hour moving average is now getting in the way.

This article was written by Greg Michalowski at Source