The USDCAD has seen down and up price action today. The low for the pair was reached soon after the CPI data this morning. That low dipped below the swing low from April 18 and April 17, but quickly rebounded with the dollars rebound back to the upside.
The move back higher took the price up toward its falling 100 hour moving average (blue line) currently at 1.34055, and also into a swing area between 1.34044 and 1.34214. The high price today reached between that swing area at 1.34142 before rotating back to the downside. The current price is trading at 1.33818.
What next?
The holding of resistance against swing area - and near the 100 hour moving average - increases that areas importance. It will take a move above each to give the buyers more confidence that the bottom is in place technically (in the short term). A move above would next have traders targeting the 38.2% retracement of the move down from the May 3 high at 1.3438, and then the 200 day moving average 1.3448.
On the downside the same levels are in play including the April 17 and 18 lows, and the low from Monday at 1.33137. The low from April 14 at 1.32966 was the lowest level going back to February 2023.
