The USDCAD pair is currently showing signs of bullish momentum, as evidenced by its breakthrough above two key technical levels: the 100-day moving average at 1.3573 and the falling 200-hour moving average at 1.3576.
Sustaining above these moving averages typically signals a stronger bullish bias. However, it’s worth noting that there were previous attempts to break above these averages yesterday and again today, but these attempts failed to hold.
In today’s session, the pair did find robust support at the 100-hour moving average, marked by the smooth blue line in the chart. This support level encouraged buyers to drive the price higher. The critical question now is whether this upward momentum can be maintained and if buyers can continue to push the pair beyond these key levels for a sustained period.
On topside, the high price from yesterday reached up to 1.35937. Getting above that level will next target the 38.2% retracement of the move down from the November 10 high. That level comes in at 1.36224.
This article was written by Greg Michalowski at www.forexlive.com. Source