Yesterday, the USDCAD traded lower, and in the process moved lower to test the high of a swing area between 1.3605 and 1.3615. The inability to extend below that level gave the buyers a go-ahead to push higher. The 200-hour moving average stalled the subsequent rise into the close.
In the Asian session today, the price was able to get above that 200-hour moving average and after up-and-down price action in the Asian/early European session, the buyers have taken control and pushed the price above the 100 or moving average on the four hour chart and the 100 hour moving average between 1.3663 and 1.36664. That area is now close support. Staying above keeps the buyers more in control.
The price is currently testing the 50% midpoint of the move down from last week’s high at 1.3678. Getting and staying above that level and then the 200 bar moving average on the 4-hour chart at 1.3692 would add to the bullish bias in trading today.
This article was written by Greg Michalowski at www.forexlive.com. Source