The price of the USDCAD has moved to new session highs after the dip in trading today fell short of the next key downside target on the downside at 1.37439 (see red number circles on the 5 minute chart above).
The move back above the 1.3771 level - and then the 100 bar MA on the 5-minute chart above (blue line) - turned sellers to buyers. The subsequent move to the upside, has now seen the price move back above the ceiling near 1.3816.
Looking at the daily chart below, the next targets come at swing highs going back from September and October of 2022. Those swing highs come in between 1.3835 to 1.3852. Also in that area is the topside trend line which is near the high of those swing levels at 1.3852 (see chart below).
There was 3 days in October that saw the price move above that area, with a spike to 1.3977. So move above 1.3852, and the door opens for more upside momentum.
The sellers in the USDCAD tried earlier today. The price of the pair had moved up over 540 pips since the bottom less than a month ago. The market was overbought.
However, if counter trend sellers enter, they need to reach targets and stay below broken levels as well. The sellers could not do that.
As a result, sellers turned back to buyers and we break to new highs.
1.3835 to 1.3852 ar
