The USDCAD has seen a push higher over the last few minutes. The move has taken the price away from its 100 hour moving average at 1.28743 (blue line in the chart above), and back into a swing area between 1.2892 and 1.29073. The falling 200 hour moving average is also near the high end of that swing area at 1.29076.
The move above the 100 hour moving average has taken the pair back into a neutral area defined by the 2 hourly moving averages. A move above the 200 hour moving average would increase the bullish bias for the pair, and have traders targeting the 1.29287 – 1.29363 swing area (see red numbered circles). That area was briefly broken on Monday, but could not sustain momentum. Move back above that area should see more momentum buying with the 38.2% retracement of the move down from the high on July 14 at 1.29709 is the next key target.
Alternatively, move back below the 100 hour moving average would spoil the buyers push today and have traders once again targeting swing areas near 1.2858 and below that between 1.28377 to 1.28425.
The low prices from June and July come in between 1.2815 and 1.2821. That area remains a key support target that if broken would increase the bearish bias.
