Forex Trading - USD/CAD Technicals with the Hurricane Gustav Developing (CLICK FOR CHART)

The current rise in oil prices, fueled most recently by the developing category 4 hurricane Gustav headed for the Louisiana coast and the Gulf of Mexico has helped lead USD/CAD lower. Looking at this move on a retracement analysis from mid-July when the pair traded below parity, we are noticing some short term technical levels developing. For the last week with oil coming off of its lows the pair tested the 200 hour moving average and failed lower through 2 retracement levels. The current rise in the price of the pair, likely a rebound from the initial reaction related to rising oil prices due to the hurricane has just penetrated the 100 hour moving average and has a chance to test the 200 hour again. We will be watching the hurricane and price action of the pair develop and bring you further analysis. Please click on the chart below for a full view of the retracement analysis.