Lower trend line keeps the buyers in control
The USDCAD is lower on the day but the dip to the low did find support against a lower trend line. That trend line (see blue circled numbers) is currently at 1.3489 (it was lower on the test today). Also near that level now is the 50% of the move up from Tuesday's low at 1.34895. If the buyers are to keep control, staying above tha trend line and 50% would keep the control firmly in their hands.
On the topside not everything is pointing higher.
Th highs today (in Asian and North American sessions) stalled in a swing area at 1.35128-198. That area has defined 3 tops over the last two days - with a failed break after the BOC decision yesterday. The area was also home to highs on April 24, 25 and May 17.
If the support holds above the trend line/50%, then getting above that ceiling again, will be eyed by the buyers/bulls.
The levels are defined. It is up to the market, if the buyers are to remain in firm control AND push the pair higher.
