Completes the down and up lap
The USDCAD has moved lower in the London session and traded through a trendline through the employment statistics. That move lower however could not be sustained. And the price started to rebound.
The run to the upside stalled near the Asian and London session highs near 1.31393. The move completed the down and up lap in the pair.
The correction off the high has so far stalled near the 50% retracement of the move down from the August 25 high at 1.31159. A move below that level would next target the 200 hour moving average at 1.31025 (call it 1.3100).
Holding above those levels, would keep the buyers more in control. On the topside the swing area between 1.3131 and 1.31393 needs to be broken and stay broken to give buyers more confidence. The high for the week from yesterday’s trading came in at 1.31608 which was near swing levels on the hourly chart from August 26 and August 27. That would be the next upside target on further upside momentum.
Buyers in control above the 50% and 200 hour moving average. However topside resistance at 1.31393 still needs to be broken and remain broken to give the upside more of a push.