USDCAD continues its corrective move lower today, but finds support at the retracement target


USDCAD Cracks After Stalling Near Swing Zone Resistance

The USDCAD hit its highest level since March 9 yesterday/this week, and in the process entered a swing zone on the daily chart between 1.28709 and 1.29001.

However, the sellers entered this swing zone (the high price reached 1.2879) and pushed the price down away from this resistance swing zone (see the red numbered circles in the chart above) .

The USDCAD closed lower for the second day in a row yesterday, but blocked the drop between a lower swing zone between 1.27832 and 1.28132 (see yesterday’s article describing the levels).

In today’s trading, the price high reached 1.2811 (just below the lower swing zone high) and a new run down has been initiated after the breakout of 1.27832 .

Looking at the hourly chart below, the low price reached 1.2718 today (65 pips from the breakout point of 1.2783). This level was the 38.2% retracement of the upside move from last Friday’s low at 1.2718.

The buyers supported against this retracement level and have since pushed the price back towards its 100 hourly moving average currently at 1.27876. This level also turned out to be yesterday’s low price and in a swing zone between 1.2776 and 1.2797 (see the red numbered circles in the chart below).

And now?

If the 100 hourly MA (and swing zone) can hold resistance, buyers and sellers will continue their battle between the 38.2% below and the aforementioned resistance near the 100 hour MA zone.

Conversely, a move above 1.2797 and sellers lose again.

Key resistance area being tested. Time will tell if it can hold and keep the patch poll in-game going forward.

USDCAD

USDCAD corrects to 38.2% but holds the 100 hourly MA above


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