Bounce off the swing low target
The USDCAD moved below the 100 hour MA at 1.21167 after the US retail sales and the better than expected wholesale sales from Canada. The next downside target at the time was at 1.20781. That was home to swing lows from May 10, May 11 and May 12 before breaking to the weeks low also on May 12.
The move lower today bottomed at 1.20796, within a pip and a 1/2 of the target level.
THe last few hours have seen the price move back above the 100 hour moving average at 1.21167. The next target comes in at 1.21297 to 1.2135. A move above that level would be needed to increase the corrective buying bias.
Conversely, a move back below the 100 hour moving average could weaken the technical picture again.
PS Canada's chief public health officer is on the wires saying he is seeing hopeful signs it has passed the peak of the third wave of Covid 19.