The USDCAD has moved to a new session high and in the process is moving away from the converged 100 and 200 hour moving averages. Those moving averages are converged currently at 1.37385. Those moving averages are at the low of a swing area between 1.3738 and 1.3752 (see red number circles on the chart above)
In the European and early North American session, the price did move below each of those hourly moving averages, but could not sustain downside momentum. Buyers are making a play to the upside now.
If momentum should continue, the next key targets come between 1.3807 and 1.38164 (see green number circles on the chart above).
On the downside, the close support comes against the old highs near 1.3767. Below that and traders would not want to see the price move into the lower swing area and certainly below the moving average levels.
NOTE: On the Tuesday and again yesterday, the price decline for the USDCAD fell below a swing area between 1.3658 and 1.3665, and a rising trendline. However, the moves below the trendline were short-lived, and help contribute to the sellers turning back to buyers (especially yesterday).
