Price bounces off broken trend line support/50% retracement
The USDCAD fell sharply last week helped by a double top and some profit taking. Sharply higher oil price also contributed to the more favorable tone for the loonie.
Looking at the weekly chart, the price also stalled last week near the 50% of the move down from the 2016 high at 1.3375 (the high reached 1.3385 at the peak last week) The prior week stalled at 1.3280. The market was not ready to go higher.
Drilling down to the 4-hour chart below, the price fell to the underside of a lower trend line and 50% retracement of the last trend move higher started on June 6th (see chart below). The combination has helped the pair move higher today. The price has also moved back above the 100 bar MA on the 4-hour chart at 1.31849. Stay above is more bullish now.
Taking an even closer look from the hourly chart below, the price off the low has retraced 38.2% of the move down last week at 1.32256. The 50% and 100 hour MA (moving lower) is at 1.3256. The 200 hour MA is at 1.3278. The 38.2% is holding up the rally now.
Can it broken? Do seller lean?
Crude oil futures which were trading at low as $73.42 in the NY session is trading back above $74 at $74.07. That could slow the pairs upside momentum.