I wrote about this yesterday in a post on the USDCAD, if you look at the weekly chart (see chart above), if you go back to 2020, there were some swing lows near the 1.3852 area that defined the higher extremes from the Covid price action. Those lows have been tested over the last 3 trading weeks. Yesterday, the high price stalled at 1.38548 (right near that area) and rotated back to the downside.
Looking at the hourly chart, that rotation lower move down to test its 100 hour moving average (blue line). Buyers leaned against the level and push the price back higher and into the September swing hi area between 1.3807 and 1.3836. That area has stalled the upside today. Getting above would retarget the aforementioned resistance off of the weekly chart up to 1.3854 area (and the high from yesterday).
Also in trading today, the low price stalled just ahead of the rising 100 hour moving average currently at 1.37585 and within a swing area between 1.3752 and 1.37657
So what traders are doing is buying against support, and selling against resistance. The bias remains in the favor of the buyers above the 100 hour moving average. Ultimately would take a move back below the 200 hour moving average 1.37018 (green line) to give sellers more control in the short-term at least.
Getting above 1.3836 and 1.3854, would open the door for further upside potential.
