April 13 low at 1.3855 is broken but only marginally and the sellers turned buyers
The USDCAD is moving to a new session high after a break to a new April low failed earlier in the session. The April 13 low came in at 1.3855. The low price today came in at 1.38492. That just doesn't cut it. So sellers slowly turn to buyers. The last hour of trading has seen extension above a swing area at 1.3920 to 1.3930.
The next target on the topside would come in against swing highs from yesterday's trade around the 1.39604 level. Also near that level is a downward sloping. Above that is the falling 100 hour moving average at 1.39859. The price has not traded above the 100 hour moving average since April 23. By the way 5 the last 6 trading days have been to the downside after peaking on April 21 at 1.4264. The move to the low was good for about 169 pips over that time.
If the bottom is in for now, holding above the 1.39203 level will be eyed by traders. Stay above the bulls off the failed break lower are still in control. Having said that there is work to do on the topside as well. Get above the 1.3960 level and the dip buyers will feel better for a move toward the falling 100 hour moving average.
Looking at the daily chart, apart from one day on April 2, the pair was confined between highs at 1.42626 and swing lows at 1.38548. The price action for saw a move down for the middle of the month, followed by a rotation back toward the highs for the month on April 21. As mentioned the last 6 or so days has been a retracement back to the lows. So price action has been quite symmetrical in an down and up and down again motion.
In the new trading month, traders will be looking for a break outside of the red box
