Traders test the swing area between 1.28249 and 1.28322
The USDCAD was not left out of the sharp move higher in the US dollar into the London session. However over the last 7 or 8 hours, the price has rotated back to the downside and in the process is now testing a swing area between 1.28249 and 1.28322.
Traders may look to lean against his level. It was swing levels going back to December 4, December 7, December 8, December 9 and December 10 (see red numbered circles and yellow area in the chart above).
Hold support and we could see a rotation back higher toward the 38.2% retracement at 1.28725. Move below and the price is back in the lower quadrant developed over the last few weeks of trading.
