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The USDCAD moved higher yesterday and away from it’s 100 day MA. The high yesterday stalled ahead of a lower swing area that is ahead of the extremes from 2021 in 2022. That swing area in the USDCAD comes between 1.27857 and 1.28132.
In trading today, the USDCAD initially moved lower in the Asian session, but found early buyers ahead of the rising 100 day moving average will and in the chart above) at 1.26744. The low for the day came in at 1.26834. The price has since moved higher with the help of the overall USD buying.
The high for the day reached above the aforementioned swing area to an intraday high of 1.2827, but has stalled and come back within the swing area. Traders will watch the 1.27857 as close support now. Stay above and traders will look for a run up toward a higher swing area between 1.2876 to 1.28967 (see green numbered circles). That swing area comes ahead of the extreme highs going back to August 2021 and December 2021 up to 1.2948 and 1.29631.
Conversely if the price move back below the 1.27857, it should be more downside probing as the pair failed on the first break.
Drilling to the five minute chart below, the rising 100 bar moving averages currently at 1.27823. Breaking below that level along with the 1.275 seven level on the daily chart would give sellers a couple reasons to push harder to the downside, and give the buyers in the choppy market in the USDCAD, some concern that the run higher may have found more sellers.
