USDCAD works on its sixth straight up day. Patrons make a play above 100 day transferring common.

The USDCAD is on observe for its sixth consecutive day of positive aspects, with the rally lifting the pair from the July 23 low of 1.3575 to immediately’s excessive of 1.3853—a transfer of roughly 278 pips. Yesterday, the pair broke out of a two-month consolidation vary with a decisive transfer above the June excessive at 1.37955, and in addition pushed via the 100-day transferring common at 1.38233.

In the present day, the value briefly dipped beneath that transferring common to a session low of 1.3813, however shortly recovered and has held above the 100-day MA since. In the course of the North American session, a retest introduced the value right down to 1.38268, simply above the transferring common, and it has bounced larger from there—suggesting patrons are defending this help stage.

So long as the pair holds above the 100-day transferring common at 1.38233, bullish management stays intact, and patrons will acquire confidence. Yesterday’s shut at 1.38292 additionally marks an intraday help zone. If value breaks again beneath these ranges, focus will shift to the previous vary ceiling and June excessive at 1.37955. A transfer again contained in the previous consolidation vary—the “Crimson Field” on the chart—would weaken the breakout narrative.

This text was written by Emma Wang at investinglive.com.