Forex technical analysis: USDCAD bounces off support area

Technical Analysis

Author: Greg Michalowski | usdcad

Held against cluster of resistance above...

In my earlier post on the USDCAD, I commented on the resistance against the 1.3147 area (stop above). That level held. 


The fall - or should I say wander - back lower has just stalled at an area that - looking at the last two day intraday price action - was a dividing line between bearish (below) and bullish (above).  The yellow area held and the price is rotating back higher.  

What now?

Well, with the price at the 1.3116 currently, buyers from below certainly don't want to see 1.3100 broken.   That is the risk.  

What are the targets?  The 1.3126 level was a recent swing high.  Above that, the early European session high came in at 1.3133.  Above that is the high for the day at 1.3143 which is where all those MAs are currently found.  There is other resistance off the hourly chart as well at 1.3147 (see earlier post)  

Traders are trading. Resistance above held. Support below is trying to hold the line.  Will we ping pong back higher or will the low be taken out?  That is the next decision for traders in this pair.  
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