The USDCAD is running higher in what has been a down and up day but with buyers now taking more control.
Looking at the hourly chart, the price in the Asian session moved sharply to the downside after the open, but found support buyers near the 61.8% retracement of the move up from the November low to the November high. That level came in at 1.3385. It is also near the low of a swing area from November (see green numbered circles). The inability to move below that level gave the dip buyers an opportunity and the battle was started..
It took a second move above the 50% midpoint and the 200 hour moving average (green line) over the last few hours of trading to increase that bullish bias. After breaking above the 100 hour moving average at 1.34716, the buying intensified even more. The price has now moved just above the high price from Friday at 1.35199.
Lower oil prices are helping to push the price back to the upside. The price of WTI crude oil reached a high of $82.70, but has since tumbled back down below the $80 level at $79.75.
The stronger-than-expected ISM services data was also a catalyst for a higher US dollar.
Later this week (on Wednesday) the Bank of Canada will announce their latest and straight decision with the market split between 25 basis points 50 basis points. That will add to trader anxiety as we get closer to the release (10 AM on Wednesday). The 100 and 200 hour moving averages will be barometers for the bullish or bearish bias. Right now, the buyers are making their play.
