The USDCAD raced higher earlier in the day and into the NY session. The trend move higher raced through the 100 and 200 hour MAs and then a swing area between 1.2883 and 1.2891 and up to another swing area between 1.2926 and 1.2937.
Prices have rotated back down in the New York morning session and has returned back to the lower swing area between 1.2883 and 1.2891.
So after a strong rise, the prices now consolidating/correcting, but testing a broken a swing area.
Overall, the bias has shifted more to the buyers. Last week, the price fell below its 100 day moving average at 1.28005 today, and even below its 200 day moving average 1.27453. On Friday closed below the 100 day moving average, but above the 200 day moving average. That still kept the sellers more in control.
However the run back to the upside here today blasted through the moving average levels and even through the 38.2% retracement of the last move down from the July 14 high.
Admittedly, the break above the 38.2% retracement failed, and the high price stalled in a swing area that has done a decent job of keeping a lid on the pair going back in time (there have been some failed break set didn't last very long).
As a result focus will be on the aforementioned swing areas (green and red circled levels). Moving below the lower or above the higher will be eyed for the next momentum move. On the downside a break below the lower swing area would retarget the 200 hour moving average (green line). On a break higher, the 50% at 1.2975 would be eyed.
