In an earlier video today on the USDCAD, I spoke to the pair getting above the 1.3398 level where the 50% midpoint was found and also above the high of a swing area up to 1.3414.
The buyers were indeed able to do that, and have subsequently run the price up to another target. This target comes from the 4-hour chart. That target is at its 200- bar moving average at 1.34396.
So far sellers are leaning against that 200 bar moving average level, but pushing against it as well. A battle is certainly on between buyers and sellers at the technical level.
A break above would have traders looking toward the 38.2% retracement of a longer-term move down from the November 1 high. That level comes in at 1.34528 and getting above that retacement is the minimum target to show that buyers are serious and mean business about a further corrective move higher.
Conversely, sellers who want to lean against the resistance targets would need to see the price move back below the 1.34144 level down to 1.3398 to give them more confidence that that corrective high is in place.
For now today, buyers are the aggressors. They are taking back more control, but they have work to do against the 200-bar moving average and the 38.2% retracement.
This article was written by Greg Michalowski at www.forexlive.com. Source