After testing the low of the up and down swing extremes on Tuesday and racing above the 100 and 200 hour MAs (blue and green lines) yesterday, the price of the USDCAD corrected lower into the London session today, and tried to switch the bias back to the downside with the break of the lower 100 hour MA (blue line in the chart above).
However, that break to the low today was short lived, and when the price moved back above the 200 hour moving average (green line), the sellers turned back to buyer's.
The stronger that expected US PPI data, and overall dollar buying has now taken the price to the higher up and down swing extremes between 1.3467 and 1.34748. The price has reached a new high of 1.3479.
Close support is now down to 1.34678. That would be the ideal level to hold - and push off of - if the USDCAD pair is to continue its run to the upside.
Buyers are making a play. Can they keep the momentum going?
A move back below 1.34678 would not necessarily kill the upside potential. However, given the recent history of ups and downs, it certainly would dull and disappointed the bulls, and could lead to buyer's turning to sellers if the 1.34748 level could not be rebroken TODAY (even this morning).
A move back below the high from yesterday at 1.34387 area would further disappoint the buyers. Traders looking for more upside momentum in the USD and USDCAD, would not want to see that.
