Yesterday’s trading in USDCAD was marked by sharp two-way volatility. Early in the session, the pair broke away from the 100 hour MA in the European/early US session (see blue line). The decline took the price below the key swing area between 1.36858 and 1.36923, and extended toward the downside before stalling just ahead of the 200-hour moving average (currently near 1.3676). That dip proved short-lived, as buyers stepped in and drove the price back higher into the close, retesting the 100-hour moving average at 1.3727. This strong rebound erased the earlier downside pressure and set the stage for today's bullish continuation.
In today’s trade, the pair consolidated for much of the session around the 100-hour MA and the 38.2% retracement of the May–June decline (1.3722). After spending time moving above and below those levels, USDCAD gained upside momentum and is now stretching higher, away from that technical congestion zone. The next upside target sits at the 50% midpoint of the larger decline, located near 1.3781—a level that will be key for further bullish extension.
As long as the price stays above the 1.3722–1.3727 support zone, the bulls remain in control in the short term. A drop back below that area would shift the bias back toward neutral and put focus again on the 1.3692–1.3685 swing area and the 200-hour MA.
Key levels:
Support: 1.3722–1.3727 (38.2% & 100-hour MA), then 1.3692–1.3685, followed by 1.3676 (200-hour MA)
Resistance: 1.3781 (50% retracement), then 1.3814 and 1.3860
The bullish momentum holds while the price remains above broken resistance-turned-support near 1.3727.
This article was written by Greg Michalowski at www.forexlive.com. Read More Details
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