USDCAD can’t extend above target swing area for the second consecutive day

The USDCAD moved higher in the Asian session and returned to a swing area between 1.3271 to 1.32853. The high price in the Asian session reached 1.3282 stalled, and rotated to the downside. The 2nd run to the upside in the early US session took the price up to a new corrective high at 1.32849, and in the process tested the high of the swing area. However, once again, the sellers pushed the price back to the downside.

Admittedly, the price low off of the Asian high remains above a lower swing area with a high at 1.32299. The low just reached 1.3245. The current price is 1.3253.

What next?

With resistance holding, the buyers and sellers are in a battle with 1.32299 as close support on the downside and 1.32853 as resistance on the topside. Traders will be waiting for the next shove outside that range.

Yesterday, the USDCAD moved above the 200-hour MA for the first time since June 1. That gave the buyers a reason to buy and took some control from the sellers who trended the market from a high of 1.36539 on May 25, to a 1.31172 low on Tuesday.

So the buyers are trying to make a play but they still have work to do. Admittedly, those same buyers had a shot today to extend toward the 38.2% and failed. That is a worry for the buyers. Can they wrestle control back from the sellers? They have to hold 1.32299 and get and stay above the 1.32853 level.

This article was written by Greg Michalowski at Source