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USDCAD moves above swing area
The USDCAD is trading to a new session high that took the price to 1.3881. In the process, the pair moved above the September 28, September 30, and October 11 highs between 1.3837 and 1.38548.
On Wednesday and pre-CPI on Thursday, the price approached those levels before breaking higher after the CPI data yesterday. The price break moved to a new 2022 high at 1.3977. However, sellers re- entered at that extreme, and the mad rush out of the USD pushed the price back sharply to the downside.
The rebound today based near the 200 hour moving average (green line in the chart above). In the last hour so the price has move back above the swing highs between 1.3837 and 1.38548. The current price trades at 1.3868. Traders will now be watching the swing area (down to 1.3837) for close support. Stay above is more bullish. Move below and there should be disappointment from the buyers.
Taking a broader look at the weekly chart below, increasing the levels importance near the 1.3854 level are swing lows going back to 2020. At that time, the price moved sharply higher off the Covid lockdown and retraced back down to the 1.3852 area before consolidating.
Two weeks ago, the price of the USDCAD moved up to that level and found sellers. This week, the price broke above that level on the CPI and is now back above. Staying above is more bullish…
USDCAD on the weekly chart