USDCAD corrects to the upside toward the falling 100 hour MA.

The USDCAD has bounced higher in trading today after reaching a new low going back to September 13. That low test today swing area between 1.3074 and 1.3083. The low price reached 1.3092 before bouncing higher.

The rebound to the upside moved back above the 50% midpoint of the move down from the October 2021 load to the October 2022 high. That midpoint level comes in at 1.3132. That level is back to being a support level for the pair. Stay above keeps the buyers in play.

The rotation to the upside has now seen the price move up toward the falling 100-hour moving average currently at 1.3196 (*see hourly chart below). The 38.2% retracement of the move down from the high price last week cuts across at 1.3204. That area between 1.3196 and 1.3204 would need to be broken to increase the bullish bias going forward. The high price today reach 1.3188. The current price is 1.3177. Traders will eying that area as a selling target

So technicals are telling us that the 1.3132 area is downside support (50% retracement and swing area on the hourly chart below). On the top side, the 100-hour moving average and 38.2% retracement between 1.3196 and 1.3204 is now resistance. The price is trading more toward the high, but there is work to do if the buyers are to take more control.

Helping the CAD move lower (higher USDCAD) is a move down in crude oil today. Looking at the daily chart below, the price of crude oil moved up to test its 200-day moving average this week near $77.32. The high price today reach $77.30 just below that moving average level, and found seller’s leaning against that level. The move to the downside today may be contributing to some Canadian dollar weakness. Be aware.

This article was written by Greg Michalowski at Source