USD/CAD thrusts higher after oil weakness in the session

USD/CAD has pushed 1.23% higher as commodities currencies struggle on Thursday.
The next resistance is pretty high up after the recent freefall in the pair.

Rajan Dhall, MSTA FX Daily

USD/CAD 4-hour chart

USD/CAD has risen like a phoenix from ashes on Thursday. The pair had been trending lower for some time but general commodities weakness has sent all the major commodities currencies lower on Thursday. Oil has pushed 8% lower on the session and the Canadian dollar often reacts to weakness in the liquid gold.

Looking closer at the chart, the price has now pushed through the 55 Exponential Moving Average to the upside but still has the 200 Simple Moving Average (SMA) in its sights. The 200 SMA could be a resistance zone so bulls need to be careful there.

The Relative Strength Index has pushed into overbought territory and this could mean a small pullback is on the cards. The velocity of the move does suggest this could continue in the medium term. Lastly, the MACD histogram has turned green and the signal lines look like they might cross to the upside.

All in all, this pair looks like it might be changing trend. The wave pattern of higher highs and higher lows is not complete. It would be good to see this for confirmation.

Additional levels

USD/CAD

Overview
Today last price	1.3571
Today Daily Change	0.0159
Today Daily Change %	1.19
Today daily open	1.3412

Trends
Daily SMA20	1.3734
Daily SMA50	1.3922
Daily SMA100	1.3751
Daily SMA200	1.3465

Levels
Previous Daily High	1.3438
Previous Daily Low	1.3316
Previous Weekly High	1.3802
Previous Weekly Low	1.3392
Previous Monthly High	1.4173
Previous Monthly Low	1.3715
Daily Fibonacci 38.2%	1.3362
Daily Fibonacci 61.8%	1.3391
Daily Pivot Point S1	1.3339
Daily Pivot Point S2	1.3266
Daily Pivot Point S3	1.3217
Daily Pivot Point R1	1.3461
Daily Pivot Point R2	1.3511
Daily Pivot Point R3	1.3584

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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