USDCAD tests resistance at 1.0575 level.

Written February 23, 2010 at 12:52 PM EST by  

gregmike-00553

The USDCAD surged higher today on the back of weaker global economy thoughts and the inability to push through materially through the 1.0405/15 support level.  The price move higher hs pushed the pair through the 100 day moving average level at the 1.0528 level and move the pair to the 50% retracement of the move down from the Feb 5th high of 1.0779 to the low reached yesterday. That level comes in a thte 1.0575 level. This level also corresponds with the prior highs/low from Feb 10th and 11th.  As a result, there is some minor profit taking. 

As long as the price can remains below this level, there may be some profit taking. However, look for support down below before the 100 day MA level at the 1.0528. 

Overall, the move today is significant in gettting above the 100 day MA and pushing higher with momentum on the break. So expect a more favorable USDCAD with buyers on dips and stops back below the 100 day MA level.

 

gregmike-00554

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