USDCAD approaches 200 day MA and backs off

Technical Analysis

Weaker Manufacturing sales and oil hurt the loonie

The USDCAD is higher on the day helped by the weaker Manufacturing sales for July (-1.3% vs -0.1% est) and fallling oil (Saudi production will be back up sooner than expectations – crude oil is down near $3.00 currently).  

Technically, looking at the daily chart above, the price of the USDCAD has moved above its 100 day moving average at 1.32715 (blue line in the chart above ), but remains below its 200 day moving average at 1.33047 (green line in the chart above).  

In between those 2 moving averages sits the 50% retracement of the move down from the end of May high to the July low. That level comes in at 1.32896 . The high price today just reached 1.3298 and backed off.  

So support at the 100 day MA. Resistance at the 200 day MA is how traders are now battling with buyers holding the edge.

Drilling to the hourly chart below in addition to the 200 day moving average, there is a top side trendline which is also slowing the rally today.  On the downside, the 100 day MA at 1.32715 is joined by swing level support at 1.32769 as well.  Staying above that area will keep the bullls in charge.  

USDCAD on the hourly chart


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