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.
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.
