The USDCAD found support ahead of the 1.0160 level and has moved higher (See earlier post). The pair has been able to move above 200 hour MA at the 1.01946 level which is good. However, the area also has resistance against the 38.2% of the move down from the June 28th high at the 1.01994. The combination gives buyers a few reasons to sell. So expect a battle at the level. IF the price is able to continue the trend higher, the 1.02302 area will be the next target level for the buyers to overtake. This is the low area from June 29th and the 50% of the move down from the same June 28th high.
On a correction, look for support at the 1.0180-86 area. This corresponds with the high from earlier in the day and also is the 38.2%-50% of the last move higher in the pair. Sellers against the current resistance will be eyeing this level for indications the high is indeed in place for now.
