Earlier technical breaks to the upside, paved the way to the upside
The USDCAD fell to a new week low yesterday to 1.26599. That broke the Wednesday low at 1.2666 but only by 7 pips. The momentum could not be sustained, and the pair snapped higher into the close.
The close saw the price move back above a topside trend line and holding above that level in the early Asian session, gave the buyers a go ahead to push higher.
Other technical hurdles at the 1.27113 ceiling (see red numbered circles) was broken (bullish) as was the 100 hour moving average (blue line). That it was the 1st break since February 5. Getting above that moving average and staying above, has led to the next targets including the 38.2% retracement at 1.27399 and the 200 hour moving average (green line).
The 200 hour moving average has found sellers on the first test. After some profit-taking off of that level, the pair has returned back to test it as I type.
A move above will next target the 50% retracement at 1.27645, followed by the downward sloping trendline connecting highs from February 2 and February 4 at 1.2772.
Holding the 200 hour MA again, and we could see a rotation back down to retest the 100 hour moving average.
Key test for both buyers and sellers.
