....but USDCAD still below pre rate decision levels
Earlier this week, the Bank of Canada painted a more positive picture, citing stronger than expected global growth. They signaled less chance for a ease and that helped to send the USDCAD tumbling lower on Wednesday the price moved from around 1.3270 to a low price yesterday at 1.31579.
Today's weaker than expected employment report out of Canada, and stronger than expected report out of US has reversed that trend.
The price high has reached up to 1.3253. That happens to be the swing low going back to November 22. In the process the pair moved above its 100 day moving average at 1.32271. That level is now risk for longs/buyers. The price also moved above its 100 hour moving average at 1.32424. That level is closer risk/support for the pair.
What the price action hasn't done so far is retraced the move lower from the Bank of Canada decision (i.e. get back above the 1.3270 area). Perhaps there is some disbelief. Perhaps the technicals are giving traders a cause for pause.
Nevertheless should the support levels hold (stay above 1.32428 or the 100 day moving average 1.3227), the 200 hour moving average at 1.32636 and 200 day moving average at 1.32777 would be topside target.
On the downside, a move back below the 100 day moving average would be a head scratcher but may lead to some longs above questioning their position.
PS recall from earlier in the week the price was mired in a 74 pip trading range between 1.3253 on the downside and 1.3327 on the topside. As mentioned the high for the day has stalled against that lower value at 1.3253 so far. KEY level.
