Trades at highest level since June 13th
The USDCAD has moved up sharply after the data misses in CPI and retail sales. The expectations for a rate hike also came back down which is helping to weaken the loonie.
Technically, the price has moved above the high from yesterday at 1.3334. So far the corrective move AFTER the rise, has found buyers near that level. That level is close risk for buyers. Stay above keeps the buyers happy.
The high for the day extended to 1.33807 so far. That took the price above the underside of a broken trend line at 1.3350 and a higher trend line at 1.3358 (see red circles). The price has backed off and moved back below each. Get back above those levels would be more bullish for the pair.
Taking a broad look at the weekly chart, the high today peaked above the key 50% of the move down from the 2015 highs. That level comes in at 1.33752 (vs the high of 1.33807). Keep that level in mind too on a rally higher. The midpoint level is often a sticky level on the first test.
In contrast is the picture from the daily. At the low today, the price based against the underside of the broken trend line. The June 21, 2017 high (a year and a day ago) comes in at 1.3347.
Can the buyers keep the momentum going?
