The hurdle above the 200 hour MA was easier today.
The USDCAD is making another run above the 200 hour MA at 1.25124. If you recall, last week, the pair moved above on Thursday and Friday, but the momentum stalled. Today, the MA is lower, so the hurdle is easier at 1.25124. Nevertheless, a move above is more bullish.
Making the break more meaningful as well, is that the last two tests stalled at the level. Earlier today, the price stalled at the level. Yesterday it also stalled against the MA level. That is significant.
As a result, the break today led to stops being triggered and the price moving higher. That MA line is now risk for longs. If the level was resistance, it now is support on the break.
Where can it go?
Being honest, the pair has a lot of topside resistance. That happens when the price trends lower. There is a lot of levels to get to and through to keep the bullish correction going.
Key levels for me:
- 1.2550 area. The 38.2% of the move down from the June 13 high (start of the last slow gring lower).
- 1.2576. The high from last week came in at 1.2575. The topside of the broken trend line cuts across there.
- 1.2592. The higher trend line (starts at June 22nd high). The 50% of the move down also comes in at the level.
- 1.2627. The 100 bar MA on the 4-hour chart.
Those are the close targets and would be just a blip of the 2017 move down which has seen the price move from a high of 1.3792 to a low of 1.2413 reached last week.
Looking at the weekly chart below, the price moved above the low from 2015 at 1.2460. That too has given the pair a better bid in trading today. The low today reached 1.2450 before moving higher.
