Swing level at 1.4076-80 is the next target
The USDCAD is moving up toward a swing area another topside resistance targets, after failing on a move below a lower swing area at 1.4008-18 once again.
Going back to middle of March, the price has found a number of swing levels in that area. It is also broken below the area on 4 different times (see red shaded areas) including briefly today. The inability to keep momentum below that level is giving buyers some hope that there will be more upside probing in trading today.
On the topside the 1.4076 – 80 is the next upside target. That area is home to swing lows from April 2, April 6, and the swing high from today (at 1.4080). A move above that level would next target the 100 and 200 hour moving averages at 1.4103 and 1.41195 respectively. In trading yesterday, the 200 hour moving average (green line) stalled the rally. As a result getting above those levels would be a key upside break.
Overall, there is some hope for the dip buyers, but keep in mind that there is also work to do on the topside if the buying momentum is to continue. Otherwise, traders will continue to battle it out between the support and resistance swing areas.
