USDCAD soars to new highs as oil prices plummet, creating bullish bias. Oil tests $73.

The USDCAD is surging (lower CAD) as the pair reacts to sharply lower oil prices. The price of crude oil is now testing the $73.00 level, down over 4.5% on the day. The price of oil has not traded this low since July 7.

Technically, the USDCAD has broken above both the 100 and 200-hour moving averages at 1.3751 and 1.37566 respectively. The price is also above the 50% midpoint of the November trading range which admittedly has seen up-and-down volatility.

Nevertheless being above those levels increases the bullish bias for the pair. It would take a move below the 100 hour moving average at 1.37512 tilt that technical buys back to the downside.

On the topside, the high today at 1.3776 is testing the low from Monday at the same level. Get above that level and chairs will look toward the 61.8% retracement at 1.3795 (call it 1.3800)

This article was written by Greg Michalowski at Source