The USDCAD breaks and runs higher (finally)

Technical Analysis

Author: Greg Michalowski | usdcad

Through the first three days the range was 64 pips. Range today is 109 pips

The USDCAD was sitting in a 64 pip trading range over the first three days of the week, but the price action action could not sustain any momentum. The bias over the 3 days was marginally higher as Monday and Tuesday had similar lows. Wednesday's low was higher.  Finally highs on Tuesday was higher than Monday and Wednesday was higher than Tuesday.  The problem was the price breaks went nowhere (see post from yesterday).

Through the first three days the range was 64 pips. Range today is 109 pips

Today, the pair finally broke and ran. Something had to give, and it did. 

The range today is currently 115 pips.  The range for the week is up to 158 pips.  

Looking at the hourly chart, a topside downward sloping trend line cuts across at 1.3230 and was broken.  Stay above keeps the buyers in control.

On the topside, the pair is moving above a swing area between 1.32413 and 1.32504 and looks toward the 50% retracement at 1.32590.  Typically, the 50% midpoint gives traders cause for pause.  Watch that area for a possible breathe with stops on more momentum above the level. 

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