USDCAD runs above 100 day MA/38.2% retracement
The inflation data out of Canada was weaker than expectations helping to push the CAD lower (the USDCAD higher. Now with US yields moving higher (and stocks getting hammered), the USD is finding a bid, forcing the USDCAD higher in the process.
Technically, the pair is also getting a boost after running away (higher) from a pair of key technical levels on the daily chart:
- The price moved above the 100 day MA at 1.35124 (See blue line on the chart above),
- The price moved above the 38.2% retracement of the move down from the October high
That level is now a risk defining level for the pair. Stay above is more bullish. Move back below and there could be disappointment on the failed break.
Looking at the US debt market:
- 2 year 4.731%, up 8 bps
- 10 year 3.954%, up 11.2 bps
- 30 year 3.976%, up 10.5 bps
The US stock indices are showing:
- Dow -689 points or -2.04%
- S&P -82.77 points or -2.03%
- Nasdaq -282 points or -2.39%