The low for the year at 1.29689
The USDCAD has traded below the 1.3000 level this year, but only on 3 separate days bck in Jan and Feb. The dips below had their shot to take the price lower. They each failed and the over March and April and into May, the price rallied to the high for the year, near 1.3800. Less than 2 months later, the price is back down testing the 1.3000 level (see red circles in the chart below).
Like back in February, the move below the 1.3000 level is a key technical break. Not only is it below the swing lows that come in the 1.3000-08 area (red circles) but is also below the natural support level. On a break, traders will want to see the price stay below the level. The next hurdle at the 1.29689 would simply be the reward from the sellers keeping the control.
For now, however, we are seeing a bounce up toward the 1.3030 area. The 1.3042 low from the end of February is close risk now for short. Stay below keeps the sellers more in control.
