USDCAD moves higher after comments from yesterday got the ball rolling.

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Yesterday BOC Lane was on the newswires speaking about the risk of a stronger CAD$ (SEE POST AND COMMENT FROM YESTERDAY and HERE). This helped the currency pair at the end of the NY day. Today we are seeing additional buying in the pair that has moved the pair above the 50.0% retracement level at the 1.0921 level and the 200 hour MA at the 1.0923 level. That break has propeled the pair to even higher levels and above the 61.8% retracement a the 1.0968 level. As long as the price remains above this level, the bias is to the upside for the pair. Dips in the USDCAD are likely to be bought with stops if the price goes below this level.

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Longer term the USDCAD has upside potential. The high for August comes in at the 1.1123 level. This is the first target level for the pair. Above that is the 100 day MA which comes in at the 1.1382 level. The USDCAD has been below the 100 day MA since April 21st when the pair moved below the average at the 1.2395 level.

These would be initial target levels for the pair if the pair can stay bullish (i.e. above) the 200 hour MA at the 1.0921 level.

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