USD/CAD thrusts higher after oil weakness in the session

• USD/CAD has pushed 1.23% higher as commodities currencies struggle on Thursday.
• The next resistance is pretty high up after the recent freefall in the pair.

USD/CAD 4-hour chart

USD/CAD has risen like a phoenix from ashes on Thursday. The pair had been trending lower for some time but general commodities weakness has sent all the major commodities currencies lower on Thursday. Oil has pushed 8% lower on the session and the Canadian dollar often reacts to weakness in the liquid gold. 

Looking closer at the chart, the price has now pushed through the 55 Exponential Moving Average to the upside but still has the 200 Simple Moving Average (SMA) in its sights. The 200 SMA could be a resistance zone so bulls need to be careful there. 

The Relative Strength Index has pushed into overbought territory and this could mean a small pullback is on the cards. The velocity of the move does suggest this could continue in the medium term. Lastly, the MACD histogram has turned green and the signal lines look like they might cross to the upside. 

All in all, this pair looks like it might be changing trend. The wave pattern of higher highs and higher lows is not complete. It would be good to see this for confirmation.

Additional levels