USDCAD Midpoint Tested
The USDCAD moved down to test 50% midpoint of the move up from the February 20 low. That level comes in at 1.36498. The low price just reached 1.36506. Going back in time to March 14, the low price also bottomed near that midpoint level at 1.36507 (see red number circles).
The move to the downside also fell below a swing area going back to February 24. That area comes between 1.3657 and 1.3665 (see green number circles).
The price is bouncing and trades back above the swing area at 1.3669. If there is more momentum to the upside there could be more sellers turning to buyers on the successful test and rotation back above the swing area levels (there already have been buyers against the old lows/50% level).
On a move below the 50% retracement level, traders would look toward 1.3641. Break below the level and the 61.8% retracement at 1.3600 becomes the next target.
