... price backs off intraday channel resistance
The USDCAD has continued the run higher today - racing above a trend line and swing area in the 1.3101-126 (see yellow area in the chart below).
The run higher on the back of trade concerns with the US, has been a steep trend on the 4-hour chart. That move has taken the price above the
- 50% retracement as well at 1.31359
- The highs from the August 10 week at 1.3174 (a risk level for longs now), and
- the 61.8% at 1.31947 today.
We currently trade above and below the 61.8%.
Drilling to the 5-minute chart, the high just reached at 1.32075, stalled right around a topside channel trend line (see chart below).
Sellers leaning? Seems that way.
When the price runs the way it has (fast and directional), traders will look for technical areas to take profit and to try and pick a top.
A move above, however, would keep the bullish trend in tact. Look for stops on a break. On the downside a break below the lower trend line (currently at 1.3177 and moving higher), would muddy the bullish trend move higher and could turn the tide in the pair (at least temporarily).
