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USDCAD Tests 100 Day MA At 1.0002

The USDCAD (NYSEARCA:FXC) is up and testing the key 100 day MA at the 1.0002 level. That resistance, combined with the psychology of the parity level is likely to attract sellers on the first test at least. A break above should solicit momentum buying, however.

Support will be eyed against the 0.9975-80 area now. This is the 38.2%-50% "correction zone" of the last move to the upside in the pair. If the trend higher is to continue, I like to see that this level attracts the buyers once again. A failure to hold this level will likely disappoint the longs who are looking for further momentum higher.

Oil is down again today which is contributing to the selling in the CAD$. The price of the most active futures moved back below the 200 day MA at 97.39 today (currently at the $96.56). Yesterday, the price moved below the key MA level but could not close below the level. The last time the price has closed below the MA was on December 19, 2011.