The BOC is just out with a comment that mortgage payments may be going up 45% by 2025 to 2026. Ouch. That is a significant jump to budget for, and highlights the other side of the mountain. Canada housing has seen a tremendous price surge and that is coming to a screeching halt as rates push higher.
The USDCAD is extending to a new session high (lower loonie) and in the process is inching back above its 200 hour moving average at 1.26019. The current price trades at 1.26032. The price has not traded above its 200 hour moving average since May 26. Getting and staying above the 200 hour moving average should see increase momentum.
Today's move to the upside is also breaking a string of 10 consecutive days of a lower lows. Yesterday's low came in at 1.25166. Today's low is at 1.2549. The price has moved down 8 of the last 11 trading days. Today would make 8 down and 4 up.
The next target comes in at 1.26177. That is the high price for the week (the high price from Tuesday's trade. The area between 1.26177 and 1.26263 is a another target area to get to and through. Move above that and traders will start to target the 38.2% retracement of the move down from the May 25 high at 1.2657. That is also near the 200 day moving average at 1.2658. Sellers should respect the 200 day moving average on the 1st test, with a stop on a break above.
On the downside, a failure above the 200 hour moving average would have traders looking back toward 1.25796. That was a swing high earlier today.