USDCAD moves to test support. Price remains below the 100 bar moving average resistance.
The USDCAD has moved lower in early NY trade and tests the 1.0346 level. The last time the pair was down at this level in October 2009, the pair used this price area as support/resistance during a consolidation period at that time (see chart above from that period). Additional support from that time period comes in at the 1.0300 level.
The USDCAD has been helped by higher commodity prices. Oil is up again today by a modest $0.22 and Gold is also up. Both benefit the Canadian dollar and the market seems to be focused on those intermarket clues for the pairs price bias. At 8:30 MA the Industrial Product and Raw Material Price indices will be released. The expectation is for a gain of 0.5% and 1.1% respectively on a month on month basis for November.
On the topside, the breaking of the 1.0405/15 level and the ability to use the level as a ceiling today, increases the importance of the level for upside resistance. Before that level look for resistance at the 1.0359 level which was the earlier low from today. Additional resistance comes in at the 1.0375 level where the 100 bar Moving average on the 5 minute chart is located. This moving average is moving lower so watch it closely.
Look for profit taking buying at current levels to slow the decline, but the corrective move higher will be telling. If it is mild, look for selling pressure to continue.
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