1.3318-39 is home to a number of swing levels in 2019
The USDCAD moved higher last week after softer GDP data. Today we are seeing more momentum higher. That run has the price entering a target area which has a number of swing highs going back to the beginning of the year. The area is between 1.3318 and 1.3339. THe high just reached 1.3325. Buyers are making a play.
On more momentum - and on break of the 1.1339 - the next targets will be at the 50% of the move down from the end of December high at 1.33658. The high price from Jan 24 comes in at 1.33748. The price has stayed below that level since January 7th.
Drilling to the 5-minute chart, the pair did have a fairly significant correction off the earlier high and is back testing that high. It is key to get above that level now. On a move lower off the highs, a move below the 100 bar MA (rising) would not be welcomed by the longs/buyers - at least intraday). That might be a risk level for buyers..
Can you sell the highs (double top)? You could, but don't want to see 1.3339 broken (with potential for stops even above the highs near 1.3325).
(Whoops....sorry Adam. He adds some other key color to the USDCAD's run higher).
