USDCAD buyers near 100 day MA are reaping rewards as the price moves toward session highs | Forexlive

The USDCAD pushed back above its 100 day moving average yesterday and closed above it for the first time since January 5. In trading today, a new high was reached up at 1.35593, but the price then fell sharply, moving to negative territory on the day (at 1.35367). The low price tested the 100 day moving average at 1.35129 and found willing buyers. Those buyers are being rewarded as a price has since pushed up to a high of 1.3556 just short of the European high at 1.35593.

So buyers against the 100 day moving average are being rewarded. Moreover the holding of the moving average line increases the levels importance going forward. Stay above is more bullish. Move below and there will probably beat some disappointment and further downside momentum.

The commodity currencies like the CAD, AUD and NZD have been reacting negatively to the downs in the US stock market. After trading modestly positive earlier, the major indices have now dipped into negative territory with the NASDAQ down -0.24% and the Dow Industrial Average down -0.5%.

US yields remain negative which should be dollar negative but the markets are ignoring the declines. The 10 year yield is at 3.915% down 3.7 basis points. The 2 year yield is down 3.8 basis points

The AUDUSD is trading near session lows and is moving closer to the 200 day moving average of 0.68038. The low price and the current hourly bar just reached 0.68104