USDCAD is above and above 100/200H MA
Looking at the hourly chart, Asian session price fell sharply after the open, but found support buyers near the 61.8% retracement of the rise from the November low to the November high. This level came in at 1.3385. It is also near the bottom of a swing zone from November (see numbered green circles). The inability to drop below this level gave the dip buyers an opportunity and the battle began.
It took a second move above the 50% midpoint and the 200 hourly moving average (green line) in the last few hours of trading to increase this bullish bias. After breaking above the 100 hourly moving average at 1.34716, the buying intensified further. Price has now moved just above Friday’s high at 1.35199.
Stronger-than-expected ISM services data was also a catalyst for a higher US dollar.
Later this week (Wednesday), the Bank of Canada will announce its latest direct decision with the market split between 25 basis points and 50 basis points. This will add to traders’ anxiety as we get closer to the release (10am Wednesday). The 100 and 200 hour moving averages will be barometers for bullish or bearish bias. Right now, buyers are playing their game.