Yesterday’s breaking of 100 week MA and 1.3000 was a key break
The USDCAD has continued what was the start of another leg higher yesterday.
see post here), the USDCAD moved first above the 100 week MA at 1.2976 area and then cracked the 1.3000 level. That was a double top from earlier in March. The price pushed higher on the breaks, and that momentum has continued today.
The high today has extended up to 1.3095 so far. The 1.3100 is a natural resistance target. Above that the 61.8% of the move down from the May 2017 high comes in at 1.3131. Then the channel trend line and another trend line connecting the August 2017 and October 2017 highs come in at 1.3173 area. Those are the next key targets (from the daily chart above).
Drilling to the hourly chart below, a topside trend line comes in at 1.3106 (and moving higher). A move above that line, will accelerate the run higher and look toward the targets on the daily chart. Stay below and there could be some backtracking into the weekend.
For now the dollar bulls remain more in control.
PS The AUDUSD and NZDUSD are making new session lows as I type.