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breaking news USDCAD falls towards the 200 hourly MA after momentum break below the 100 hourly MA


USDCAD finds support near the 200 hourly moving average

the USDCAD

USD/CAD

USD/CAD is the currency pair comprising the United States dollar (symbol $, code USD) and the Canadian dollar from Canada (symbol $ code CAD). The pair’s exchange rate indicates how many Canadian dollars are needed to buy one US dollar. For example, when USD/CAD is trading at 1.3500, that means 1 US dollar equals 1.35 Canadian dollars. The US dollar (USD) is the most traded currency in the world, while the Canadian dollar (CAD) is the seventh most traded currency in the world. The United States and Canada are geographical neighbors and therefore there is a lot of trade between the two countries. Thus, there is often decent volatility and low spreads for USD/CAD, usually between 1 and 3 pips on most forex brokers. Factors Influencing USD/CAD There are a number of important economic or press releases that can affect USD/CAD. This includes, among other things, nonfarm payrolls data for the United States which is released on the first Friday of every month. These measures tell us whether employment is increasing or decreasing, while the Gross Domestic Product (GDP) of Canada or the United States measures the total value of all goods and services produced by the country. Additionally, the USD/CAD is known as a “commodity pair” because Canada has large amounts of natural resources, especially oil, which is its most traded commodity. As a result, it is important for long-term USD/CAD speculators to keep a close eye on crude oil developments due to the strong negative correlation.

USD/CAD is the currency pair comprising the United States dollar (symbol $, code USD) and the Canadian dollar from Canada (symbol $ code CAD). The pair’s exchange rate indicates how many Canadian dollars are needed to buy one US dollar. For example, when USD/CAD is trading at 1.3500, that means 1 US dollar equals 1.35 Canadian dollars. The US dollar (USD) is the most traded currency in the world, while the Canadian dollar (CAD) is the seventh most traded currency in the world. The United States and Canada are geographical neighbors and therefore there is a lot of trade between the two countries. Thus, there is often decent volatility and low spreads for USD/CAD, usually between 1 and 3 pips on most forex brokers. Factors Influencing USD/CAD There are a number of important economic or press releases that can affect USD/CAD. This includes, among other things, nonfarm payrolls data for the United States which is released on the first Friday of every month. These measures tell us whether employment is increasing or decreasing, while the Gross Domestic Product (GDP) of Canada or the United States measures the total value of all goods and services produced by the country. Additionally, the USD/CAD is known as a “commodity pair” because Canada has large amounts of natural resources, especially oil, which is its most traded commodity. As a result, it is important for long-term USD/CAD speculators to keep a close eye on crude oil developments due to the strong negative correlation.
Read this term played with the breakout of its 100 hourly moving average during the Asian and European sessions today (blue line in the chart above). There were a number of ticks on the hourly chart below the moving average line, but momentum was limited on these small breaks, and price bounced slightly higher. High bounce prices, however, were only able to enter the lower end of Tuesday and Wednesday’s swing highs at 1.30207.

Finally, the 100-hour moving average broke with momentum after weaker-than-expected Michigan consumer sentiment, and price momentum increased. The USDCAD declined towards the rising 200 hourly moving average currently at 1.29197. The low price reached 1.29236 where early buyers against the moving average blocked the fall. Current prices are back to 1.2950.

After that ?

Watch the 1.29607 level for short term clues. This level was the low of Tuesday’s trade. At the time, the price dipped just below an ascending trendline, but quickly rebounded higher. Going back above this level would give buyers more confidence in the 200 hourly moving average. Conversely, staying below keeps the hope of breaking the 200 hourly moving average in play. The price last traded below the 200 hourly moving average on May 5.

Also, near the 200 hourly moving average, the levels fluctuate between 1.2907 and 1.29181. Move below these levels and the 50% midpoint of the upside from the May 5th low comes in at 1.28944 and would be the next downside target.

Conversely, a move above the 1.29607 level could see a repeated bounce towards the 100 hourly moving average of 1.3003 (let’s call it 1.3000).


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