The USDCAD tested and held against the 100 hour MA and trend line resistance at the 0.9893/94 area. With the combination at the same level, I am not surprised on the first test. The correction off the level will be eyed now. With a very narrow trading range so far today at 22 pips, traders looking for a continuation of the move higher today, will likely only give to the 0.9883 area for the correction support (SL below). The 50% of the days range and the 100 and 200 bar MA on the 5 minute chart are in that area.
A break above the resistance opens the door for the key 0.9900-05 area. This is the 38.2% of the move down from the August 10th high and was a floor area from August 9th to August 15. A move above will target the 200 hour MA 0.9912.
Oil, an influence for the pair of late as prices surged higher, is down $0.26 today.
