The USDCAD is moving higher as focus for that pair is on the fall in commodity prices including the price of oil and the risk-off flows due to tumbling stocks in the US.
Technicals have also played a role in the USDCADs rise to the upside after earlier in the day, the price moved back above the 200-hour MA for the first time since August 6th (and based against that MA before racing higher). The price has reached the broken 50% midpoint of the move up from the end of December low at 1.35612, and backed off a bit. The next key target from increased momentum would look toward the 1.3590 area where swing lows from earlier this year stalled fall, and also where both the 100 and 200 bar MAs on the 4-hour chart are converged. Be aware of that area not only today, but going forward.
I explain it all in the above video.
This article was written by Greg Michalowski at www.forexlive.com.
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