Bases and then breaks.
The USDCAD is breaking higher today in what has been a technical run to the upside.
The pair started to find support yesterday and earlier today against some swing areas starting between 1.20269 and 1.20296 (blue numbered circles), followed by another area between 1.20407 and 1.20461. However, the highs yesterday and earlier today, were still respecting the 100 hour moving average (blue line). That kept the buyers and sellers in a battle.
Today in the London session, the price broke above the 100 hour moving average, tested the falling 200 hour MA (green line), and has been able to push above that MA in the early North American session.
The momentum on the breaker that moving average increased, and the price has since moved above the 50% retracement of the move down from the May 13 high at 1.21074.
The pair now looks toward the falling 100 bar moving average on the four hour chart currently at 1.2125.
The last time the price traded above that moving average line?
You have to go back to April 21 (over a month ago), when the price broke below that moving average line at 1.2558. Since then, the price has tumbled down to nearly 1.2000 (the low reached 1.20122 at the low last week). That's a 447 pip trend run.
So, with technicals helping the way, there is room for a correction and we are seeing that today. Support held at technical swing levels and other target resistance levels were broken. The 4-hour MA is the next target. Can that hurdle be broken?
The range for the day is up to 81 pips. The averages 73 pips. Key level.
