The USDCAD is continuing its run to the upside trading at the highest level since November 4. Looking at the hourly chart above, the 61.8% retracement of the move down from the November high to the November low cuts across at 1.35850. That would be the next upside target. The current price is trading at 1.3575.
The pair fell sharply in the Asian session today, but found support buyers near the London session low from yesterday's trade near 1.34078 (it is also a swing area going back in time - see chart above).
In the North American session today, the pair moved higher despite higher oil prices and stronger GDP in Canada today. Getting above a swing area between 1.3494 and 1.35103, and then the 50% midpoint of the November trading range at 1.35163, gave buyers more upside momentum.
As Adam pointed out earlier, it is a curious move given some of the fundamentals but the technical picture has certainly been a tail wind for the upside momentum. The 61.8% retracement is the next stop.
UPDATE: Crude oil is taking a step lower and that is helping to push the USDCAD even higher now. Looking at the hourly chart, the price of crude oil has moved from the 200 hour moving average near $79.25 down to the 100 hour moving average.
