The USDCAD moved above the swing high from March 8 at 1.29001 today and in the process extended to a new high for 2022 and the highest level since December 21, 2021 (see daily chart above). The high price today reached 1.2913, but has moved back below the 1.2900 level into a lower swing area between 1.28709 and 1.29001 (see green numbered circles in the chart above). A move back below 1.28709 would spoil the buyers hopes for a run toward the higher extreme between 1.29483 and 1.29631 (see red numbered circles in the chart above).
Drilling down to the hourly chart below, the move today moved above the swing high from last week at 1.2878 on its way to the high price of 1.29131.
The subsequent move back down has seen a price low of 1.2879 just above the high from last week, and an earlier ceiling high from the London morning session today (see green numbered circles in the chart below).
Holding that level will be a intraday barometer for buyers and sellers. Stay above is more bullish. Move below and we could see further downside probing back toward a lower swing area between 1.28467 and 1.2857 (see red numbered circles in the chart below). A move below that level, and traders will start the eye (think about) targeting the rising 100 hour moving average currently at 1.28171.
Recall from last Friday, the price of the USDCAD moved below that 100 hour moving average (blue line) for the first time since April 22. However, momentum could not be sustained, and the price bounced back higher in the North American session. Moving back above the 100 hour moving average on Friday turned the sellers in the buyers with the price closing the near it's highs at 1.2855.
Today more bullish momentum is taken the price even higher with traders now watching the 1.2879 as close support.
