The USDCAD has move to a new session high. What I like about the move for the buyers is the pair moved above the 100/200 hour MA and a swing area between 1.36372 tos 1.3671, retraced to the lower end and bounced back higher.
Traders will now be watching the upper end of the that swing area near 1.3666 as a close support. The buyers are making a play for the 2nd time today. Yesterday, the buyers also tried to break above the upper extreme of the swing area and the 100/200 hour MAs but failed.
Can the buyers keep the momentum going this time?
Risk can be defined. Stay above and there is more upside to explore.
Of note this week is the move lower from the high on Friday is that the low Tuesday and Wednesday stalled at the 38.2% at 1.3499. That was the clue to bounce yesterday, and was a bullish signal. If the correction of a trend move can only get to the 38.2%, the move is a plain vanilla correction.
So the tilt is in the favor of the USD buyers technically with risk defined near 1.3666 area.
