The USDCAD has been ignoring the rise in oil prices that can typically strengthen the CAD over the last few days. Today the price moved above the February high at 1.28768.
The move above has the pair trading in an area that includes a number of swing highs between 1.28768 and1.29631. The high price today reached 1.2900 (a nice round number) and backed off a bit. The current price is trading at 1.2890.
Other swing high targets include:
- 1.2880 from from January 28, 2021
- 1.2895 from September 20, 2021
- 1.29483 from August 20, 2021
- 1.29558 from December 21, 2020
- 1.2963 from December 20, 2021
With the price trading into that upper area on the daily chart, the buyers are making a play for further gains.
Drilling to the five minute chart below, the market started to move higher from a low of about 1.28059 near the end of the London morning session today. The subsequent move higher reached the 1.2900 level and then corrected back into the 38.2% – 50% retracement area between 1.2853 and 1.28641 before rotating back to the upside.
The rising 100 bar moving averages is now moving toward the 50% retracement level at the 1.2853 level. That moving average - and the midpoint level - will be close risk for longs looking for further upside momentum. Stay above each and the bias remains more in the favor of the buyers. The price can also look to extend the 1.2900 level in look toward the other swing highs including 1.2948, 1.2955 and 1.2963.