High reached 1.40145
the price of the USDCAD squeeze above the 1.4000 level for the 1st time since February 2016 (see weekly chart below). The price high extended to 1.40145. That was just short of the February 7, 2016 high price of 1.40146. The price has since moved back below the 1.400 level
The price of the pair has been squeezing higher today helped by Bank of Canada liquidity measures and the continued fall in oil prices (see Adam's post here).
Drilling down to the hourly chart below, the pair initially fell in the 1st few hours of Asian trading. The fall took the price below its 100 hour moving average for the 1st time since March 4. However selling momentum could not be sustained and the price moved higher. Price action has been mostly to the upside with a few small corrective bars along the way.
What might hurt the bullish bias intraday from a technical perspective?
The high price from late Thursday reached up to 1.3960. If there is a rotation back down below that level it might lead to more profit-taking especially on the failed break above the 1.4000 level.
