USDCAD tests 38.2% retracement

The USDCAD is trading to a new session high and in the process is testing the 38.2% retracement and swing highs from March 24 March 28 near 1.25853 and 1.25923. The price just to the above the 38.2% retracement. Buyers are making a play to the upside.

Earlier today, the USDCAD price did down but found support near the swing high from April 1. A swing low going back to March 23 also is in the area between 1.2536 and 1.25423. Holding that level on the dip not once but twice, gave the buyers the go-ahead to push higher.

Moving above a swing area at 1.2561 and 1.25696 (see blue numbered circles) was another bullish move in the last few hours of trading. That level is now a close risk level on the downside. Stay above and the buyers remain in control.

A move higher would next target the 200 day moving average of 1.2617. The USDCAD's price moved below the 200 day moving average back on March 22 and has not been above that moving average level since that time.

Later this afternoon, the national budget will be released. Yesterday, it was leaked that foreign buyers of real estate would be stopped for the next two years in an attempt to stop the surge in home prices. The market is selling the CAD ahead of the news/budget..