USDCAD trades to new session highs, but....

Technical Analysis

Author: Greg Michalowski | usdcad

USDCAD running into some overhead resistance after bounce off the 100 day MA 

The USDCAD moved lower yesterday, helped by a move away from the 200 hour MA (green line) and general USD selling. 

USDCAD running into some overhead resistance after bounce off the 100 day MA 

The low for the day, near the close for the day, moved below a lower trend line by a few pips and in the early trading today, the price pipped even a few pips lower, but the 100 day MA loomed just below at 1.32808 and buyers thought it best, to lean against the key MA (the low reached 1.32862 - close enough).  

Since then the price has been able to move above the topside channel trend line and is currently extending to a new day high.  The next targets are the swing lows from early yesterday (floor at 1.3348 area) and then the 38.2% at 1.33552. The high just reached 1.3346.  There may be some cause for pause against the overhead resistance targets. 

Drilling to the 5-minute chart below, the 38.2-50% retracement of the last run higher comes in at 1.3325-30.  Look for that area to be a barometer for the trend-ish move higher today. If the price correction holds support above that area, the buyers remain in firm control. A move to retest the highs remain in the cards. If broken, the waters for the trend become a little more muddy.

The 5-minute chart shows a trend-ish move higher.

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