The pair runs higher. Tests for percent of the move down from the November high
The Bank of Canada was more dovish then even the market expected (click here), and that has sent the USDCAD rising to the upside.
Looking at the 4 hour chart above, the price action took the pair above the 2019 high at 1.3104. In the process it also cracked above its 200 bar moving average on the 4 hour chart at just below that level at 1.31016.
The last time the price was above the 200 bar moving average was back on December 11. That area at 1.3102 area is now a risk/bias defining level for the pair. Stay above is bullish. Move below and something counter to the move, is influencing the market. Look for buyers on a dip toward that area to stall corrective falls.
The run higher has now taken the price to the 50% retracement of the move down from the November 20, 2019 high price. That retracement comes in at 1.31389. The high price just extended to 1.31397. We are currently testing that level now. So far the sellers seem to be taking a breather against the level. There is a stall as some traders take profits.
The break above the 50% level, would have traders looking toward the underside of the broken trend line at 1.31485. Above that opens the door toward the 1.31676 and then the 100 day moving average at 1.3181 level. The price of the USDCAD has not trade above its 100 day moving average since December 11.
