Canada had it’s day to shine by not having to share the Unemployent release with the US and wouldn’t you know it, it comes out pretty much spot on. So a non event from the fundamental perspective.
From a technical perspective the price is also in a “non event area” where there is a bunch of technical levels clustered together. Looking at the hourly chart above:
- The high held the 61.8% of the move move down this week at the 1.0355.
- Also at that level is the underside of the long trendline connecting the low from May 3rd and May 11th ( not shown but comes in at 1.0356).
- Below that the 100 hour MA is at 1.0332, and
- The 200 hour MA is at 1.0321 help to define the range.
The low this hour found support against the 200 hour MA. If a move away from this congestion is to start and the trend higher today is to continue, traders can lean against this level with a tight stop below. If the level holds, the progression higher would eventually need to break above that 1.0355/56 area to give the buyers more reason to cheer. A move back below the 200 hour MA would likely disappoint and lead to a rotation back lower. A move below the 1.0298 level
