USDCAD runs to the upside | Forexlive

The USDCAD traded up and down yesterday falling below it 200 hour moving average in the process but findings support buyers near a cluster of targets including the 100 day moving average, the 38.2% retracement of the move up from the April 14 below and a swing area between 1.3521 and 1.3527.

That same cluster of support held in trading today with the low price coming in at 1.35275 (just above the area).

The price started to move to the upside in the European session, breaking back above the 200 hour moving average and more recently the 100 hour moving average at 1.3568 and 1.35889 respectively. The momentum has continued with the pair reaching a intraday high of 1.36268 so far. Swing highs from last week came in at 1.3647, 1.3650, and 1.3667.

Risk for traders looking for more upside in the US dollar (or weakness in the CAD) would be a break back below the 100 hour moving average 1.3588. For sellers, a move back below the 100 hour moving average and 200 hour moving average would increase the bearish bias.

The move higher in the USDCAD is running counter to recent declines in the USD versus some of the other currencies (dollar is weaker vs EUR, GBP, JPY and CHF in particular). The 2 year yield is now at 3.977% or down -16 basis points the 10 year yield is down -13.3 basis points to 3.44%. Concerns about regional banks are starting to weigh on the yield curve and fed expectations as well. The market is pricing in a 40 basis points of cuts by the end of the year which is higher than the 25 basis points yesterday. Will that put a lid on the rise in the USDCAD?

Technically, the bias remains positive back above the 100 hour moving average at 1.35889. Interim support may be eyed at the natural support level at 1.3600.