The USDCAD broke higher earlier today, and in the process extended above a key swing area between 1.3526 and 1.35428. Just above that level was the following 100-day moving average 1.3545. Getting above all those levels increase the bullish bias and the price raised higher.
That move to the upside extended above the 1.3600 level up to 1.3605 before finding sellers. A move back below the high price from February 14 at 1.3585 increased the selling momentum. The price is currently trading at 1.3572.
As long as the price remains above the 100-day moving average in the high of the swing area below 1.3545, the buyers remain in control. A break back below that level would likely disappoint the buyers who jumped on the break to the upside.
This article was written by Greg Michalowski at www.forexlive.com. Source