USDCAD correcting higher after run lower this week
The USDCAD is correcting higher in trading today after a run lower this week.
The high for the week was on Monday at 1.3394. The low was reached yesterday at 1.31913. The run to the downside got started on Monday when the price fell below its 200 hour moving average (green line). The corrective moves on Tuesday and again on Wednesday retested the 200 hour moving average only to find sellers. That kept the bears in control.
The last leg lower started on Wednesday against the 200 hour moving average (at 1.33462) and continue to the low yesterday when traders leaned against a lower trendline at the 1.31913 level.
The rally off of the low has the price testing the 38.2% retracement of that last leg to the downside and 1.32505. So far sellers have tried to lean against that level. A move above however could see the price extend up to the swing area between 1.3267 and 1.32709. The 50% retracement is also in that area at 1.32687. Above that and the falling 100 hour moving average at 1.32782 would likely stall the rally.
Giving a little more bullish tent intraday at least, is the payers support at 1.3228 to 1.3233. The low price in the North American session did fine support buyers against that area (see blue numbered circles). That area is a risk level for longs buyers looking for more upside momentum. Stay above is more bullish.
