Swing area between 1.21927 to 1.22027
The USDCAD moved lower in the NY morning session and in the process tested the 38.2% and the rising 100 bar MA on the 5-minute chart (see earlier post here).
Holding those levels, gave the buyers some confidence to push higher (despite higher oil prices today BTW). The earlier high at 1.21979 was broken, but the pair remains confined by the swing area from the hourly chart below that comes between 1.21927 and 1.22027. The high price just reached 1.2203.
The pair is at a key area where buyers and sellers gather to try and figure out the next move. The good/bullish developments for the pair is the price has moved away from the confined "red box" where the price mostly fluctuated between going back to May 7th (with a few extensions above and below that failed). The run away from that box is bullish for the pair, but the price needs to now moved away from the 1.2200 area to take the next step. The next key target would be the 61.8% retracement of the move down from the May high at 1.22192. Traders will be eyeing the 50% retracement at 1.21785 as a risk level now.
