The USDCAD is finding buyers against its rising 100 hour moving average currently at 1.35756 (see rising blue line on the chart below). Stay above that moving average will keep the buyers more in control. Also in play is a 200 day moving average at 1.35889.
On the topside, there is work to do to increase the bullish bias.
- Getting above the high of a swing area near 1.36188. Yesterday the price did extend above that level but was quickly rejected.
- Getting above the 38.2% retracement of the move down from the August high at 1.3633.
- Getting above the 200-bar moving average only four hour chart at 1.36459.
- Getting above the 100-day moving average at 1.36740
- Getting above the 50% midpoint of the same move lower at 1.36927.
All of those levels are upside targets that need to the checked off to increase the bullish bias. All that is contingent on staying above the 100-hour moving average today and going forward. If the price falls below that level with momentum, I can easily see the buyers turn to sellers on the disappointment, but stay above, and there is room to roam with specific targets to get to and through.
This article was written by Greg Michalowski at www.forexlive.com. Source