$USDCAD tests 100 hour MA at the 1.0546 level
Written November 12, 2009 at 1:48 PM EST by Greg Michalowski
The USDCAD has tested the 100 hour MA at the 1.0546 level. The high so far has reached 1.0538 so we are seeing some selling pressure against the level Commodity prices are being hit today on the back of the dollar buying we are seeing today. Oil is down over $2.00 today. A break to above the MA will target the 38.2% of move down from the November 2nd high to the November 12th low. That level comes in at the 1.0588 level. Above that is the 200 hour MA at the 1.0617 level currently.
On the downside, look for support at the the 1.0505 level where the 100 bar MA on the 5 minute chart is found and lows from the last few hours of trading.
Categories: Forex Trading | Tags: USD/CAD
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Dear Our teacher Greg,
Just I want to ask about the cause of the dollar buying..is it caused by the low oil
price or by the stock market?
Thanks and Appreciation,
Regards,
Ghadeer
The buying today was started with comments out of the economic conference in Singapore whereby Treas Sec Geithner talked up a higher dollar. Later there were comments from ECB officials talking about the same thing. Yesterday, Bank of Englands King spoke of the high level of the GBP and there was talk about China allowing their currency to appreciate which can help pressure the EURO in the process. So the combination gave a fundamental reason for dollar buying. Stocks and commodities falling are also contributing to the decline (or so is the theory goes). The rally has taken the pair to key technical levels and those levels have so far held. So perhaps the dollar buying may be done for now.
Greg