USDCAD rebounds higher and retraces 50% of the move down from last week’s high. What next?

The USDCAD raced lower last week and continued that fall yesterday to a low of 1.36284. However, the move lower stalled, and the price moved back above a swing area between 1.3659 and 1.3668 (and held support on a dip). Sellers turn the buyers and that momentum has continued in trading here today.

The price has more recently moved above 8 another swing area between 1.3735 and 1.3743 and its falling 100-hour moving average of 1.37405. That area is now support.

On the top side, the price has also peeked above its 50% retracement of the move down from last week’s high at 1.3763, but momentum has been limited. If the price is going higher, getting about that 50% retracement level and staying above would have traders targeting the 200-hour moving average at 1.3792.

This article was written by Greg Michalowski at Source