The USDCAD has extended to a new North American session high in early trading with a high price reaching 1.2942. The price is currently trading around 1.2930.
The road to the highs has now taken the price up for the 5th consecutive day. Over that time. The price has move from a low of 1.25166 to the high price today of 1.2942. That is a move above 425 pips in 5 days trading.
Looking at the hourly chart, the price started near the high of a swing area between 1.2859 and 1.2895. The price in the Asian session tried to extend above that higher level, but ran out of momentum and rotated back to the downside. The low price reached 1.2865 which was 6 or so pips away from the lower extreme level of 1.2859. Buyers leaned and pushed the price back higher in the London into the early North American session.
The next upside target area comes between 1.29496 and 1.29607. Move above that area should open the door for further upside momentum.
Admittedly, the pair is a little overbought. There is some room for a correction. However, on the downside, it would take a move back below 1.28949 to ruin the last break higher storyline. However, if that can be done it would also take the price into negative territory for the day (the price close yesterday at 1.2897).