Sellers give up and retrace week's declines
The USDCAD trended lower yesterday until the price reached the 200 day MA (currently at 1.3507 today). The fall lost momentum. The buyers and sellers waged a up and down war between 1.3500 and 1.3520. That war continued until the early European trading hours today, when the sellers gave up and the corrective move higher began.
That move to the upside has sent the price above the swing low from Monday at 1.3535, but has remained below the topside trend line at 1.3549, and the 38.2% of the week's trading range at 1.35558.
On the downside now, the 1.35185 to 1.35235 area is close support. That area encompasses the swing lows from July 6 and July 7, and the swing hi from July 9. Yesterday the pair move below that area and tried to stay below, but could not. A move back below the area would give the sellers more control.
