The USDCAD moved to a high of 1.3207 today and in the process got within 15 pips of the 2022 high from July at 1.3222. Close but sellers leaned. The price has rotated back down.
That move lower has now seen the price move back to an old trend line at 1.3160 area. That trend line connected highs from September 2021, December 2021, May 2022. In July the trend line was broken, but the day after the break higher, sellers came in near the old trend line. The price rotated lower for the rest of the month and did not bottom again until August.
What now?
If the price action can repeat itself and move back below the old trend line, it would be a catalyst to start a corrective move lower. I would watch a move below the July 15 high at 1.3133 for a confirmation target to get to and throuugh.
Absent that, technically, the buyers are still in control
Key time on the daily chart for the USDCAD.
