USDCAD trades to a new low. Trades into a swing arear from end Aug/early Sept

Technical Analysis

Author: Greg Michalowski | usdcad

Target support at 1.3035-1.3046

The USDCAD has reached a new session low as it trends to the downside today.  That low is now reach 1.30359.  The move to the lows as taken the price into a swing area defined by lows from the end of August to early September. That swing area comes between 1.3035 and 1.30464.  A move below would open the door toward the August 31 and September 1 lows at 1.3019 and 1.29936.

USDCAD on the 4 hour chart
As the price looks toward the recent lows, there could be some traders putting a toe in the water as risk can be defined and limited. However, on a break, look for buyers to turn to sellers.  

Drilling to the 5 minutes chart, the pair initially move higher before reversing back below the swing high price from the last hour so trading yesterday at 1.31462. After using that level as a ceiling (see red numbered circles), sellers push the price lower in the early North American session.

The 38.2% retracement of the last trend moved lower comes in at 1.30748. That is now close resistance. 

USDCAD on the 5 minute chart
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