USDCAD soars to new highs as oil prices plummet, creating bullish bias. Oil tests $73.

<p>The USDCAD is surging (lower CAD) as the pair reacts to sharply lower oil prices. The price of crude oil is now testing the $73.00 level, down over 4.5% on the day. The price of oil has not traded this low since July 7. </p><p>Technically, the USDCAD has broken above both the 100 and 200-hour moving averages at 1.3751 and 1.37566 respectively. The price is also above the 50% midpoint of the November trading range which admittedly has seen up-and-down volatility.</p><p>Nevertheless being above those levels increases the bullish bias for the pair. It would take a move below the 100 hour moving average at 1.37512 tilt that technical buys back to the downside.</p><p>On the topside, the high today at 1.3776 is testing the low from Monday at the same level. Get above that level and chairs will look toward the 61.8% retracement at 1.3795 (call it 1.3800)</p>

This article was written by Greg Michalowski at www.forexlive.com.