The move to the upside for the USDCAD has continued today. The price is working on it's 7th up day in the last 8 days. In the process, the pair has moved up to test the swing high from May 12. That high reached 1.3076. The high price just ticked up to 1.3078. So technically, the USDCAD traded to its highest level since November 2020. It is a new high for the year of course.
Having said that, the price has move back to the downside currently trading at 1.30550 currently.
On the downside, there is a swing area ahead of the price extreme from May between 1.30368 and 1.30515 (see red numbered circles and yellow area). Move below 1.30368 (and stay below, and we should see some further downside selling as result of the failed break, and the failure to remain above the aforementioned lower swing area. The high price from Wednesday reached 1.29951 short of the 1.300 natural resistance level . That area would be the next downside target on further selling.
Looking at the weekly chart below, the move to the upside has taken the price above the 38.2% retracement of the move down from the 2020 high. That level comes in at 1.30224. The price is also moved above its 200 week moving average at 1.30312. Those levels are also in play especially since it's a Friday. The price has not closed above its 200 week moving average week of October 25, 2020.
So watch those levels in the short-term as well. A move below could make it easier for a retest of the 1.2995 to 1.3000 area where another decision will be made by buyers and sellers.
For now, however, the market is on alert for a potential failed break, but sellers have work to do to wrestle control from the buyers.
