Moves above swing area at 1.3314 to 1.3353 area
The USDCAD is moving above a swing area between 1.3314 to 1.3353 on the daily chart (see red numbered circles). Admittedly, in August the price moved above and below that area as the market decided the next move. However it settle to the downside and the pair moved his way toward the 1.29934 low reached at the beginning of September. That low fell short of the December/January 2020 lows at 1.29508. The price started to ratchet higher.
The last 4 trading days has seen the price continue the corrective move higher to the aforementioned swing area. On more upside momentum, a downward sloping trendline cuts across at 1.3415. Above that is the falling 100 day moving average at 1.34726 (and a swing area between 1.3463 and 1.35169). Like the AUDUSD (see post here), there is room to roam on a correction given the sharp move lower).
Drilling to the hourly chart below, the price action today has seen some choppy trading on its moved to the upside, but a lower trendline has held support for dip buyers. That trend line currently comes in at 1.3366 (and moving higher).
Above that level, watch the 1.33462 level. That was the swing hi from yesterday's trade. Today when the price initially move higher, sellers leaned against that level. Admittedly, the initial break today did fail (and the price retested the lower trendline), but the price has since moved back above the level and moved to new session highs. If the price is to continue higher, that level would be close risk for buyers now.
The price is also trying to extend above a topside trend line connecting recent highs from September. Buyers making the play on both the daily and hourly chart. There is also room to roam on a further corrective move higher.
