The USDCAD fell to the lowest level since November 19 during trading yesterday, and in the process, moved into a swing area of swing highs and lows between 1.2584 and 1.2604. The low price reached 1.25967 before bouncing higher (and making a new high in the North American session too).
In trading today, the price found support buyers ahead of the 38.2% at 1.26413 and started to build more upside momentum. That ended up taking the price up to test the 100 hour MA in the early North American session. Sellers did end up leaning against that technical target (risk was defined and limited) and the price rotated lower. The 100 hour moving average is currently at 1.27127. The low corrective price off today's high just reached 1.26850.
The price is moving back higher in trades at 1.2700. The dynamics remain in place from a technical perspective. Get back above the 100 hour moving average (and the swing levels near that level), and traders will start to look toward the higher 200 hour moving average at 1.27486. Conversely, stay below and the move higher today is looking more corrective of the move down this week, with bias shifting back to the downside in the 38.2% retracement 1.26413.
So, key level held on the move higher today, but there is also a battle between the buyers and sellers and has yet to be fully resolved.
