Back below higher extremes
The 1.3493 to 1.35044 area is home to a number of swing highs going back to April 24. There have been runs above that level with 1.35198 the highest high from April 24. Well today, the price spiked above the swing area (yellow area) and extended to 1.35202. That was it. The price has come off and currently trades at 1.3486. The low for the day reached 1.34809 earlier in the day.
So with the price back lower, it reestablishes the yellow area (up to 1.3504) as a hurdle to move above on a more dovish BOC. Move above, and it should be time to get out of this range (i.e. look for a break of the 1.3520 level).
If that can't be done, buyers have in the past, and can in the future head back down toward the lower extremes, with moves below the 100 hour MA at 1.34623 and the 200 hour MA at 1.34466 (blue and green lines) as targets that if broken, tilt the bias more to the downside.
