USDCAD saw a great bullish move yesterday from our predicted support area, as Australia cut interest rates and big money got out of their carry trades. At the moment USDCAD is technically still in a bearish momentum although yesterdays bull move might be what we needed to spark a bullish rally.
On the Daily we still haven’t closed above the 21 ema therefore in my opinion the market is still bearish as we have seen rally like this one in the previous months.
Market is still below our long trend ema’s 150, 200, 365. We have reached our predicted top for the week, and would like to see a retracement around the 1.26-1.266 area to regain the bull trend as a higher low.
On the Hourly our long term ema’s have been breached, we would like to see a retracement to the 200 ema/DPP area of 1.263 to regain the bull trend. A strong market will probably not give a retrace and will hold its low above 365 ema and above 1.27 which we can see here was and influential resistance/ support area.
Another thing to keep our eye on is Oil as we are sitting on an important support level and Oil company earnings today have been coming out better than expected, therefore we might be able to see our USDCAD retrace from the Oil inventories coming out today at 10:30 eastern time.