USDCAD moved up to test a swing area target

Sellers had their shot in the early Asian session

The USDCAD moved lower in reaction to the lower dollar after the FOMC decision yesterday. However, the pair is bouncing back today as the USD also rebounds.

Technically, the sellers in the early Asian session had their shot to take the pair lower. The price move below a rising upward sloping trendline AND the 200 hour moving average (green line). However, sellers took the shot and they missed. 

The sellers turned the buyers and after breaking back above the 100 hour moving average (blue line) and retesting it in the European/London morning session, buyers leaned and pushed the price higher. 

The price is currently testing a swing area between 1.24295 and 1.24334.  A break above would have traders targeting the highs seen yesterday near the 1.2446 to  1.2456 area.  

PS. The price just broke above the aforementioned high.  Intraday traders would now watch the 1.24295 level as close stops.  Stay above is more bullish. 

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November 05, 2021 at 02:06AM
Greg Michalowski
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