USDCAD back positive after reaching new cycle low

Technical Analysis

Author: Greg Michalowski | forex

Traded to lowest level since Feb 5th, 2018

The USDCAD pressed to another fresh cycle low and to the lowest level since February 5, 2018. The price reached 1.24402 before bouncing.  Looking at the daily chart below, the price at the low remained above a lower trend line which comes  in at 1.24157 currently (and moving lower).  Moving below that level, would open the door for further downside.   

Traded to lowest level since Feb 5th, 2018
Recall fundamentally, the Canada employment report on Friday came in much stronger than expectations.  The net change in new jobs rose +259.2K vs +75.0K estimate.

Drilling to the hourly chart below, the price on Friday fell below the Feb 25 cycle low at 1.24647 but only by a few pips. Today, the price action took the price to a newer low at 1.24402. The last 5 hourly bars has seen a rebound back above the close from Friday at 1.24739. That level is now a barometer for the buyers and sellers.  Stay above is more bullish intraday at least.  The price just reached 1.24897. The Asian session high came in at 1.24928.

If the high is breached, traders will be looking toward the downward sloping trendline at 1.2506 currently ( and moving lower). Break above that, and the swing low from Thursday's trade at 1.25195 will be targeted. 

USDCAD on the hourly chart

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