Tests 200 hour MA.

The USDCAD has shot up about 80 or so pips in the last hour of trading. Oil prices have been declining today with WTI down 3% to 49.87. There was also some headlines on a newswire taken from the Bank of Canada's annual report. Those headlines attributed to BOC governor Poloz said "monetary stimulus needed to avoid recession" and "Canada economy trying to grow and significant headwinds". I would think these comments are more of a summary for what happened in the past (i.e., stating the obvious) vs. something new now.

In any case the pair shot up to just above the 38.2% retracement of the move down from the March 18 high at 1.25718 but just below the 200 hour moving average at 1.2589. The high came in at 1.25826.

Looking at the 5 minute chart below, if the buyers are supportive of the move higher, they should come in against the 38.2 – 50% retracement of the trend move higher. That area comes in at 1.2541 to 1.2551. The correction off the initial high held above the 38.2% retracement. So buyers remain in control.