Reverses higher after sell off yesterday
The USDCAD has squeezed back higher in US trading today. The low today held trend line support and that started the buying. Oil prices moved lower earlier today (now recovering a bit) and that helped push the CAD lower (the USDCAD higher).
There have been sellers against the 200 hour MA (green line in the chart below) on the first look. Holding the level becomes the line of sand now for the sellers (at 1.2498 - might as well make it 1.2500) and a level that needs to be broken for a continued push higher. If the level can hold, look for a move below 1.24733 (50% of the move down from yesterday's high) to signal the high may be in place for the day.
Looking at the picture overall, the pair continues to remain in the month long consolidation range. Yesterday's move lower was an opportunity to invoke a change and potential corrective trend lower. However, when the lower trend line held today, with subsequent swing low targets going untested, the sellers threw in the towel.
