The USDCAD moved to a new high going back to January 16th 2012 and in the processs moved above the 50% of the move down from the 2011 high (reached in October at the 1.06559). That level comes in at 1.02272 and the high extended to 1.02445. That move above was quickly reversed and the price is now back below the 1.0227 level.
Trader’s concerned about the failure, will look to sell against the level now with a tight stop on a break above. If the price stays below that level, the 100 and 200 bar MA on the 5 minute chart will be the next targets at the 1.0200 area. A move below will look toward the low for the day at 1.0178 as the sellers look for a correction from the month long (well going back to April 27th) move higher.That move has trended the market from a low of 0.9798 to the high today or 1.02445 (446 pips)
