The run to the upside in the USDCAD has now moved through the next key upside target. That target included the 200 day moving average at 1.2659, and the 38.2% retracement of the move down from the May 25 high at 1.26571. Getting above those levels increase the bullish bias. They also represent close risk intraday for the pair.
Recall from last week, the price trade above and below the 200 day moving average on May 30, May 31, June 1, and June 2 before breaking to the downside. The high price during that consolidation took the price up to 1.2686. That level is the next upside target on further momentum. Above that, and the 100 day moving average (higher blue line) and 50% retracement would be targeted at the nice round number of 1.2700.
The move higher in the USDCAD got its shove after the Bank of Canada warned of housing risks. They commented that mortgage payments could go up by 45% by 2025/2026.
