The USDCAD fell initially after the US and Canadian jobs reports both of came out stronger than expected. However, after the focus returned to the effect on the US dollar, that helped to reverse the USDCAD pair back to the upside.
The price is now extending to a new high and in doing so is extending above a swing level at 1.4435. Above that, is a swing area between 1.4448 and 1.4466.
The price is also stretching toward the high of what has been an up-and-down trading range of the last three or so trading weeks.
Early this week the price fell below the lower swing area at 1.4334 on both Monday and Tuesday, but could not sustain the momentum. On Wednesday, the price based near that level starting the rotation back to the upside.
On the downside, the cluster of moving average is defined by the 100 hour moving average at 1.43889, the 100 bar moving average on the four hour chart at 1.4372, and the 200 hour moving average 1.43797 remain as a bias defining level. Ultimately, if the sellers are to take more control they need to get and stay below that cluster of moving averages.
This article was written by Greg Michalowski at www.forexlive.com. Source